Mar 31, 2023
b) As at 31 March 2023, the fair value of investment properties are '' 102.50 crores (31 March 2022: '' 127.52 crores). These valuations are based on the valuations performed by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation Rules, 2017. Fair value is based on market value approach. There has been no restriction on disposal of property or remittance of income and proceeds of disposal (refer note 63).
c) Leasing arrangements : Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Refer note 50 for details on future minimum lease rentals.
b) Rights, preference and restrictions attached to equity shares:
The Company has only one class of equity shares having a par value of '' 1.00 per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation of the Company, the equity shareholders are entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.
d) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the year end:i) Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the financial year 2018-19 to 2022-23:
Nil (during FY 2017-18 to 2021-22: Nil) equity shares allotted without payment being received in cash.
ii) Shares issued in aggregate number and class of shares allotted by way of bonus shares:
The Company has issued total Nil equity shares (during FY 2017-18 to 2021-22: Nil equity shares) during the period of five years immediately preceding 31 March 2023 as fully paid up bonus shares including shares issued under ESOP scheme for which entire consideration not received in cash.
iii) Shares bought back during the financial year 2018-19 to 2022-23:
Nil (during FY 2017-18 to 2021-22: Nil ) equity shares bought back pursuant to section 68, 69 and 70 of the Companies Act, 2013.
iv) Shares issued under employee stock option plan (ESOP) during the financial year 2018-19 to 2022-23:
The Company has issued total 1,02,42,954 equity shares of '' 1.00 each (during FY 2017-18 to 2021-22: 63,35,973 equity shares) during the period of five years immediately preceding 31 March 2023 on exercise of options granted under the employee stock option plan (ESOP).
v) Shares reserved for issue under options:
For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company, refer note 61. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment with the Company on or before the vesting date.
Securities premium is used to record the premium on issue of shares, which will be utilised in accordance with provisions of the Act.
Share option outstanding account
The reserve is used to recognize the grant date fair value of options issued to employees under employee stock option schemes and is adjusted on exercise/ forfeiture of options.
General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. It is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.
Debt instruments through other comprehensive income
This represents the cumulative gains and losses arising on the revaluation of debt instruments measured at fair value through other comprehensive income reclassifiable in statement of profit and loss net off existing recognition whien such investments are disposed of or subjected to impairment provision.
27.1 SECURITY NARRATION FOR THR OUTSTANDING CURRENT BORROWINGS FROM BANKS AS AT 31 MARCH 2023: Working capital demand loan facility:
Repayable on demand and secured by way of first pari-passu charge / hypothecation among banks in consortium over the current assets both present and future including inventories and book receivables, owned by the Company.
CBLO borrowings:
Secured against invetsment in governent securites (G-Sec).
27.2 SECURITY NARRATION FOR THR OUTSTANDING CURRENT BORROWINGS FROM BANKS AS AT 31 MARCH 2022: Commercial paper (unsecured):
The company has two types of commercial papers issued:
(i) '' 49.22 crores is repayable in 12 months from the date of drawdown by the Company;
(ii) '' 49.61 crores is repayable in 3 months from the date of drawdown by the Company.
27.3 RATE OF INTEREST: The Companyâs current borrowings facilities have an effective weighted-average contractual rate of 6.86 % per annum (31 March 2022 : 3.83 % per annum) calculated using the interest rates effective for the respective borrowings as at reporting dates.
27.4 The Company has filed quarterly statements of current assets with the banks that are in agreement with the books of accounts.
A The Board of Directors at its meeting held on 04 May 2023 have recommended a payment of final dividend of '' 2.70 per equity share with face value of '' 1.00 each for the financial year ended 31 March 2023, which amounts to '' 478.38 crores. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.
# Paid to shareholders during the financial year 2022-23.
46. CONTINGENT LIABILITIES AND COMMITMENTS
A Contingent liabilities (Not provided) |
||
Claims against the Company not acknowledged as debt # |
||
Claims by employees |
1.11 |
1.02 |
Excise duty / service tax / stamp duty matters (refer note 49) |
74.36 |
66.78 |
Sales tax matters (refer note 49) |
87.81 |
89.69 |
Income tax matters * |
79.73 |
88.06 |
Others |
5.37 |
8.37 |
Total |
248.38 |
253.92 |
# Based on discussions with the solicitors / favourable decisions in similar cases / legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision is considered necessary.
* In the event of any unfavourable outcome in respect to such litigations, the liability would be settled to an extent against unused minimum alternate tax credits which have not been recognized as an asset in the books of accounts as been explained in note 26.2.
Pursuant to judgement by the Honâble Supreme Court of India dated 28 February 2019, it was held that basic wages, for the purpose of provident fund, should include certain allowances which are common for all employees. However, there is uncertainty with respect to the applicability of the judgement and period from which the same applies and accordingly, the Company has not provided for any liability on account of this.
Estimated amount of contracts remaining to be executed on capital account and not |
219.43 |
187.04 |
provided for (net of capital advances of '' 7.03 crores (31 March 2022 : '' 25.17 crores)) |
* Sales tax provisions made towards classification matters and towards rate differences matters pending at various levels including assessing authority / revisional board/ commissioner''s level / Appellate Tribunal and at Honâble High Courts.
** Entry tax provisions made towards tax difference matters at Orissa pending at various levels including assessing authority / commissionerâs level / Appellate Tribunal and at Honâble High Court.
# Excise provisions made towards excise classification matters pending at various levels including Commissioner, Appellate Tribunal and Honâble High Court. Further, provision made towards stamp duty cases pending at Honâble High Court.
## The utilisations pertains to cases settled during the year against the Company, accordingly the Company deposited amount against aforementioned provision. Adjustments represents amounts reclassified from âprovision of excise / service tax / stamp dutyâ to âprovision of sales tax / entry taxâ.
i) These provisions represent estimates made mainly for probable claims arising out of litigations/disputes pending with authorities under various statutes (Excise duty, Sales tax, Entry tax). The probability and the timing of the outflow with regard to these matters depend on the final outcome of the litigations/disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow.
ii) Discounting obligation has been ignored considering that these disputes relate to Government Authorities.
I. INFORMATION ON LEASE TRANSACTIONS PURSUANT TO IND AS 116 - LEASESA Assets taken on lease *
The Company has leases for office building, warehouses, related facilities and cars. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use
asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company currently classifies its right-of-use assets in a consistent manner in leased buildings under property, plant and equipment.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office buildings and other premises the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Company is required to pay maintenance fees in accordance with the lease contracts.
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial statements. Operating segments have been identified on the basis of the nature of products.
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income).
Segment assets and liabilities:
Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.
57. CAPITAL MANAGEMENT - POLICIES AND PROCEDURES
For the purpose of the Companyâs capital management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.
The Companyâ s capital management objectives are:
⢠to ensure the Companyâs ability to continue as a going concern
⢠to provide an adequate return to shareholders
by pricing products and services commensurately with the level of risk.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.
In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March 2022.
58. FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES
The Companyâs financial liabilities comprise mainly of borrowings, trade payables and other payables. The Companyâs financial assets comprise mainly investments, loans, trade receivables, cash and cash equivalents, other balances with banks and other receivables.
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies.
The Companyâs activities expose it to market risk, interest rate risk and foreign currency risk. The Board of Directors (âBoardâ) oversee the management of these financial risks through its Risk Management Committee. The risk management policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Companyâs approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Companyâs management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Companyâs financial performance.
The following disclosures summarize the Companyâs exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
The Company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them according to Companyâs objectives and declared policies in specific context of impact thereof on various segments of financial instruments. The Board provides oversight and reviews the risk management policy on a quarterly basis.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to balance the Companyâs position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs comprehensive interest rate risk management. As the Company does not have any significant amount of debt, the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that investments are made within acceptable risk parameters after due evaluation.
The Company operates internationally with transactions entered into several currencies. Consequently the Company is exposed to foreign exchange risk towards honouring of export / import commitments.
Management evaluates exchange rate exposure in this connection in terms of its established risk management policies which includes the use of derivatives like foreign exchange forward contracts to hedge risk of exposure in foreign currency.
The above table represents total exposure of the Company towards foreign exchange denominated assets and liabilities. The details of unhedged exposures are given as part of note 56.
The below table demonstrates the sensitivity to a 1% increase or decrease in the foreign currencies against '', with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 1% represents managementâs assessment of reasonably possible change in foreign exchange rate. 1% increase or decrease in foreign exchange rates will have the following impact on profit before tax:
The Companyâs exposure to price risk arises from investments held and classified as FVTPL or FVTOCI. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivables. Individual risk limits are also set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-looking information.
Financial assets are written-off when there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the Company. The Company provides for overdue outstanding for more than 90 days other than institutional customers which are evaluated on a case to case basis. The Companyâs concentration of risk with respect to trade receivables is low, as its customerâs base is widely spread across the length and breadth of the country.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior management. Management monitors the Companyâs net liquidity position on the basis of expected cash flows vis-a-vis debt service fulfilment obligation.
59. CATEGORY WISE CLASSIFICATION OF FINANCIAL INSTRUMENTS
The fair values of the financial assets and financial liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the financial year 2021-22. The following methods and assumptions were used to estimate the fair values:
i) The fair values of investments in mutual fund units is based on the net asset value (âNAVâ) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
ii) The fair values of other investments measured at FVTOCI and FVTPL are determined based on observable market data other than quoted prices in active market.
iii) The carrying amount of financial assets and financial liabilities measured at amortised cost in these standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
Financial assets and financial liabilities are measured at fair value in these financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement elucidated in item 5(k) of accounting policies.
C Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
(a) Investment in mutual funds: The fair values of investments in mutual fund units is based on the net asset value (âNAVâ) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.
(b) Investment in debt instruments: The fair value of investments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.
60. DISCLOSURE RELATING TO EMPLOYEE BENEFITS PURSUANT TO IND AS 19 - EMPLOYEE BENEFITS(A) Defined contribution plans
Amount of '' 3.23 crores (31 March 2022 : '' 3.24 crores) is recognised as an expense and included in employee benefits expense in the Standalone Statement of Profit and Loss under Employeesâ Superannuation Fund.
(B) Defined benefit plans Gratuity (funded)
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of 5 continuous years of service as per Payment of Gratuity Act, 1972. However, no vesting condition applies in case of death. The weighted average duration of defined benefit obligation is 7.09 years (31 March 2022 : 7.08 years).
The Company makes contributions to ââDabur Employeeâs Gratuity Trustââ, which is funded defined benefit plan for qualifying employees.
Post separation benefit of Directors
Post separation benefit of directors includes car, telephone, medical and housing facility for eligible directors.
Description of risk exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such, the Company is exposed to various risks as follows:
a) Salary increases - Actual salary increases will increase the planâs liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
b) Investment risk - If plan is funded then assets/liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
c) Discount rate - Reduction in discount rate in subsequent valuations can increase the planâs liability.
d) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact planâs liability.
(i) The actuarial valuation of plan assets and the present valuation of defined benefit obligation were computed at year end. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
(ii) Discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.
(iii) The salary escalation rate is computed after considering the seniority, the promotion and other relevant factors, such as, demand and supply in employment market.
61. DISCLOSURES REQUIRED PURSUANT TO IND AS 102 - SHARE BASED PAYMENT
Under Employee Stock Option Scheme (ESOP) of the Company, share options of the Company are granted to the senior executives subject to achievement of targets as defined in ongoing vision of the Company. Vesting period ranges from 1 to 5 years. Each option carries the right to the holder to apply for one equity share of the Company at par. There has been no variation in the terms of options during the year. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.
63. The Holding Company has sold Investment Property at Thane, Mumbai which was classified as assets held for sale on 31 March 2022.
64. Pursuant to Share Purchase Agreement (âSPAâ) and Shareholders Agreement (âSHAâ) executed by Dabur India Limited (âDaburâ or âthe Companyâ) with the existing Promoters and Shareholders of Badshah Masala Private Limited (âBadshahâ), the Company has acquired 51% equity shareholding of Badshah from its shareholders upon fulfillment of terms and conditions as per SPA and SHA and the said transaction has been completed on 2nd January 2023.
Consequent to the above transaction, Badshah Masala Private Limited has become a subsidiary of Dabur India Limited w.e.f. today i.e. 2nd January 2023. Badshah, an Indian company, is primarily engaged in the business of spices under the trademark âBadshahâ.
The total purchase consideration and transactions costs is '' 481.32 Crores. The entire consideration was paid in cash.
65. Consequent to application of reduction of capital by H&B Stores Limited, a wholly owned subsidiary of the company for reduction of equity capital base in terms of section 66(1)(b)(i) of companies act, 2013, the company has taken measures by way of creating provision against ensuing corresponding reduction of investment base in its wholly owned domestic subsidiary, which has been shown under exceptional items.
66. Other Statutory Information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any charges pending satisfaction with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or,
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or,
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(vi) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 such as, search or survey or any other relevant provisions of the Income Tax Act, 1961,
(vii) The Company has not been declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or any other lender or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
(viii) The Company does not have any transactions with companies struck off, other than disclosed (refer note 29.3).
64. In the opinion of the Board of Directors, current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known / expected liabilities have been made.
65. The figures of the previous year have been re-classified according to current year classification wherever required.
Mar 31, 2022
a) Addition to the above property, plant and equipment includes ? 2.56 crores (31 March 2021: ? 1.13 crores) incurred at Companyâs inhouse research and development facilities at Sahibabad, Uttar Pradesh.
b) Plant and equipment were hypothecated with banks against term loans as on 31 March 2021. (refer note 25.2)
c) Contractual obligations : Refer note 44B for disclosure of contractual commitments for the acquisition of property, plant and equipment.
d) Leasehold land : Represents land taken on lease for the years ranging from 20 to 100.
e) Impairment loss : âDisposals / adjustments for the yearâ above include impairment reversal mainly pertaining to assets which are lying idle, damaged and having no future use amounting to ? 0.44 crores (31 March 2021: ? 0.84 crores).
b) As at 31 March 2022, the fair value of investment properties are '' 127.52 crores (31 March 2021: '' 148.03 crores). These valuations are based on the valuations performed by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation Rules, 2017. Fair value is based on market value approach. The fair value measurement is categorised in Level 3 of fair value hierarchy. There has been no restriction on disposal of property or remittance of income and proceeds of disposal.
c) Leasing arrangements : Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Refer note 48 for details on future minimum lease rentals.
b) Rights, preference and restrictions attached to equity shares:
The Company has only one class of equity shares having a par value of '' 1.00 per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation of the Company, the equity shareholders are entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.
d) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the year end:i) Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the financial year 2017-18 to 2021-22:
Nil (during FY 2016-17 to 2020-21: Nil ) equity shares allotted without payment being received in cash.
ii) Shares issued in aggregate number and class of shares allotted by way of bonus shares:
The Company has issued total nil equity shares (during FY 2016-17 to 2020-21: 8,75,000 equity shares) during the period of five years immediately preceding 31 March 2022 as fully paid up bonus shares including shares issued under ESOP scheme for which entire consideration not received in cash.
iii) Shares bought back during the financial year 2017-18 to 2021-22:
Nil (during FY 2016-17 to 2020-21: Nil) equity shares bought back pursuant to section 68, 69 and 70 of the Companies Act, 2013.
iv) Shares issued under employee stock option plan (ESOP) during the financial year 2017-18 to 2021-22:
The Company has issued total 63,35,973 equity shares of '' 1.00 each (during FY 2016-17 to 2020-21: 74,09,179 equity shares) during the period of five years immediately preceding 31 March 2022 on exercise of options granted under the employee stock option plan (ESOP).
v) Shares reserved for issue under options:
For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company, refer note 59. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment with the Company on or before the vesting date.
Description of nature and purpose of each reserve Capital reserve
Capital reserve represents the difference between value of the net assets transferred to the Company in the course of business combinations and the consideration paid for such combinations.
Securities premium is used to record the premium on issue of shares, which will be utilised in accordance with provisions of the Act.
Share option outstanding account
The reserve is used to recognize the grant date fair value of options issued to employees under employee stock option schemes and is adjusted on exercise/ forfeiture of options.
General reserve
General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. It is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
Retained earnings
Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.
Debt instruments through other comprehensive income
This represents the cumulative gains and losses arising on the revaluation of debt instruments measured at fair value through other comprehensive income that have been recognized in other comprehensive income, net of amounts reclassified to profit or loss when such assets are disposed off and impairment losses on such instruments, if any.
25.1 REPAYMENT TERMS FOR THE OUTSTANDING CURRENT BORROWINGS FROM BANKS AS AT 31 MARCH 2022: Packing credit facility:
Repayable after 6 months from the date of drawdown by the Company.
Term loan facility (unsecured):
Repayable in 12 months from the date of drawdown by the Company.
Commercial paper (unsecured):
The company has two types of commercial papers issued:
(i) '' 49.22 crores is repayable in 12 months from the date of drawdown by the Company;
(ii) '' 49.61 crores is repayable in 3 months from the date of drawdown by the Company.
25.2 REPAYMENT TERMS AND SECURITY DISCLOSURE FOR THE OUTSTANDING CURRENT BORROWINGS FROM BANKS AS AT 31 MARCH 2021:
Cash credit facility:
Repayable on demand and secured by way of first pari-passu charge / hypothecation over the current assets both present and future including inventories and book receivables, owned by the Company.
Packing credit facility:
Repayable after 6 months from the date of drawdown by the Company.
Bank overdraft facility:
Repayable on demand.
Working capital demand loan facility:
Repayable on demand and secured by way of first pari-passu charge / hypothecation over the current assets both present and future including inventories and book receivables, owned by the Company.
Term loan facility (secured):
Repayable in 12 months from the date of drawdown by the company and secured by way of charge over specific movable fixed assets located at Baddi Greenfield unit to the extent of the amount outstanding.
Term loan facility (unsecured):
Repayable in 12 months from the date of drawdown by the Company.
25.3 RATE OF INTEREST: The Companyâs current borrowings facilities have an effective weighted-average contractual rate of 3.83 % per annum (31 March 2021 : 3.28 % per annum) calculated using the interest rates effective for the respective borrowings as at reporting dates.
25.4 The Company has filed quarterly statements of current assets with the banks that are in agreement with the books of accounts.
# Based on discussions with the solicitors / favourable decisions in similar cases / legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision is considered necessary.
* In the event of any unfavourable outcome in respect to such litigations, the liability would be settled to an extent against unused minimum alternate tax credits which have not been recognized as an asset in the books of accounts as been explained in note 24.2.
Pursuant to judgement by the Honâble Supreme Court of India dated 28 February 2019, it was held that basic wages, for the purpose of provident fund, should include certain allowances which are common for all employees. However, there is uncertainty with respect to the applicability of the judgement and period from which the same applies and accordingly, the Company has not provided for any liability on account of this.
* Sales tax provisions made towards classification matters and towards rate differences matters pending at various levels including assessing authority / revisional board/ commissioner''s level / Appellate Tribunal and at Honâble High Courts.
** Entry tax provisions made towards tax difference matters at Orissa pending at various levels including assessing authority / commissionerâs level / Appellate Tribunal and at Honâble High Court.
# Excise provisions made towards excise classification matters pending at various levels including Commissioner, Appellate Tribunal and Honâble High Court. Further, provision made towards stamp duty cases pending at Honâble High Court.
##The utilisations pertains to cases settled during the year against the Company, accordingly the Company deposited amount against aforementioned provision. Adjustments represents amounts reclassified from âprovision of excise / service tax / stamp dutyâ to âprovision of sales tax / entry taxâ.
i) These provisions represent estimates made mainly for probable claims arising out of litigations/disputes pending with authorities under various statutes (Excise duty, Sales tax, Entry tax). The probability and the timing of the outflow with regard to these matters depend on the final outcome of the litigations/disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow.
ii) Discounting obligation has been ignored considering that these disputes relate to Government Authorities.
48. INFORMATION ON LEASE TRANSACTIONS PURSUANT TO IND AS 116 - LEASESA Assets taken on lease *
The Company has leases for office building, warehouses and related facilities and cars. With the exception of shortterm leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company currently classifies its right-of-use assets in a consistent manner in leased buildings under property, plant and equipment.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office buildings and other premises the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Company is required to pay maintenance fees in accordance with the lease contracts.
iv) The Company does not carry any provisions for corporate social responsibility expenses for the current year and previous year.
v) The Company does not wish to carry forward any excess amount spent during the year.
vi) The Company does not have any ongoing projects as at 31 March 2022 and 31 March 2021.
50. INFORMATION ON SEGMENT REPORTING PURSUANT TO IND AS 108 - OPERATING SEGMENTS Operating segments:
Consumer care business Home care, personal care and health care
Food business Juices, beverages and culinary
Other segments Guar gum, pharma and others
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial statements. Operating segments have been identified on the basis of the nature of products.
Segment revenue and results
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income).
Segment assets and liabilities:
Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.
55. CAPITAL MANAGEMENT - POLICIES AND PROCEDURES
For the purpose of the Companyâs capital management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.
The Companyâ s capital management objectives are:
⢠to ensure the Companyâs ability to continue as a going concern
⢠to provide an adequate return to shareholders
by pricing products and services commensurately with the level of risk.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, other payables, less cash and cash equivalents, excluding discontinued operations, if any.
In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2022 and 31 March 2021.
56. FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES
The Companyâs financial liabilities comprise mainly of borrowings, trade payables and other payables. The Companyâs financial assets comprise mainly investments, loans, trade receivables, cash and cash equivalents, other balances with banks and other receivables.
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies.
The Companyâs activities expose it to market risk, interest rate risk and foreign currency risk. The Board of Directors (âBoardâ) oversee the management of these financial risks through its Risk Management Committee. The risk management policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Companyâs approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Companyâs management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Companyâs financial performance.
The following disclosures summarize the Companyâs exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
The Company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them according to Companyâs objectives and declared policies in specific context of impact thereof on various segments of financial instruments. The Board provides oversight and reviews the risk management policy on a quarterly basis.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to balance the Companyâs position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs comprehensive interest rate risk management. As the Company does not have any significant amount of debt, the exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of safety, liquidity and returns. This ensures that investments are made within acceptable risk parameters after due evaluation.
The Company operates internationally with transactions entered into several currencies. Consequently the Company is exposed to foreign exchange risk towards honouring of export / import commitments.
Management evaluates exchange rate exposure in this connection in terms of its established risk management policies which includes the use of derivatives like foreign exchange forward contracts to hedge risk of exposure in foreign currency.
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivables. Individual risk limits are also set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-looking information.
Financial assets are written-off when there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the Company. The Company provides for overdue outstanding for more than 90 days other than institutional customers which are evaluated on a case to case basis. The Companyâs concentration of risk with respect to trade receivables is low, as its customerâs base is widely spread across the length and breadth of the country.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior management. Management monitors the Companyâs net liquidity position on the basis of expected cash flows vis-a-vis debt service fulfilment obligation.
Maturity profile of financial liabilities
The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:
57. CATEGORY WISE CLASSIFICATION OF FINANCIAL INSTRUMENTS
The fair values of the financial assets and financial liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the financial year 2020-21. The following methods and assumptions were used to estimate the fair values:
i) The fair values of investments in mutual fund units is based on the net asset value (âNAVâ) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
ii) The fair values of other investments measured at FVTOCI and FVTPL are determined based on observable market data other than quoted prices in active market.
iii) The carrying amount of financial assets and financial liabilities measured at amortised cost in these standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
Financial assets and financial liabilities are measured at fair value in these financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; or
Level 3: unobservable inputs for the asset or liability.
C Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
(a) Investment in mutual funds: The fair values of investments in mutual fund units is based on the net asset value (âNAVâ) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.
(b) Investment in debt instruments: The fair value of investments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.
58. DISCLOSURE RELATING TO EMPLOYEE BENEFITS PURSUANT TO IND AS 19 - EMPLOYEE BENEFITS(A) Defined contribution plans
Amount of '' 3.24 crores (31 March 2021 : '' 3.37 crores) is recognised as an expense and included in employee benefits expense in the Standalone Statement of Profit and Loss under Employeesâ Superannuation Fund.
(B) Defined benefit plans Gratuity (funded)
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of 5 continuous years of service as per Payment of Gratuity Act, 1972. However, no vesting condition applies in case of death. The weighted average duration of defined benefit obligation is 7.08 years (31 March 2021 : 7.09 years).
The Company makes contributions to âDabur Employeeâs Gratuity Trustâ, which is funded defined benefit plan for qualifying employees.
Post separation benefit of Directors
Post separation benefit of directors includes car, telephone, medical and housing facility for eligible directors. Description of risk exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such, the Company is exposed to various risks as follows:
a) Salary increases - Actual salary increases will increase the planâs liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
b) Investment risk - If plan is funded then assets/liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
c) Discount rate - Reduction in discount rate in subsequent valuations can increase the planâs liability.
d) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact planâs liability.
The following tables summarises the components of net benefit expense recognized in the Standalone Statement of Profit and Loss and the funded status and amounts recognized in the Standalone Balance Sheet:
(i) The actuarial valuation of plan assets and the present valuation of defined benefit obligation were computed at year end. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
(ii) Discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.
(iii) The salary escalation rate is computed after considering the seniority, the promotion and other relevant factors, such as, demand and supply in employment market.
59. DISCLOSURES REQUIRED PURSUANT TO IND AS 102 - SHARE BASED PAYMENT
Under Employee Stock Option Scheme (ESOP) of the Company, share options of the Company are granted to the senior executives subject to achievement of targets as defined in ongoing vision of the Company. Vesting period ranges from 1 to 5 years. Each option carries the right to the holder to apply for one equity share of the Company at par. There has been no variation in the terms of options during the year. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.
61. The company has passed the resolution for the sale of Investment Property at Thane, Mumbai. The search for the buyer is underway. No impairment loss was recognised on reclassification of investment property as assets held for sale and the group expects the fair value less cost to sell to be higher than carrying amount.
62. The outbreak of Covid-19 pandemic is causing significant disturbance and slowdown of economic activities globally. The management has considered the possible effects that may result from the pandemic on the recoverability/carrying value of the assets. Based on the current indicators of future economic conditions, the management expects to recover the carrying amount of the assets, however the management will continue to closely monitor any material changes to future economic conditions. Given the uncertainties, the final impact on Companyâs assets in future may differ from that estimated as at the date of approval of these standalone financial statements.
63. Other Statutory Information:
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or,
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or ,
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vi) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961,
(vii) The company has not been declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
(viii) The Company does not have any transactions with companies struck off, other than disclosed (refer note 27.3).
64. In the opinion of the Board of Directors, current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known / expected liabilities have been made.
65. The figures of the previous year have been re-grouped / re-classified to render them comparable with the figures of the current year.
Mar 31, 2021
b) Rights, preference and restrictions attached to equity shares:
The Company has only one class of equity shares having a par value of '' 1.00 per share. Each shareholder is entitled for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation of the Company, the equity shareholders are entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.
d) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the year end:i) Shares allotted as fully paid pursuant to contract(s) without payment being received in cash during the financial year 2016-17 to 2020-21:
Nil (during FY 2015-16 to 2019-20: Nil ) equity shares of '' 1.00 each allotted without payment being received in cash.
ii) Shares issued in aggregate number and class of shares allotted by way of bonus shares:
The Company has issued total 8,75,000 equity shares (during FY 2015-16 to 2019-20: 18,75,000 equity shares) during the period of five years immediately preceding 31 March, 2021 as fully paid up bonus shares including shares issued under ESOP scheme for which entire consideration not received in cash.
iii) Shares bought back during the financial year 2016-17 to 2020-21:
Nil (during FY 2015-16 to 2019-20: Nil ) equity shares of '' 1.00 each bought back pursuant to Section 68, 69 and 70 of the Companies Act, 2013.
iv) Shares issued under employee stock option plan (ESOP) during the financial year 2016-17 to 2020-21:
The Company has issued total 74,09,179 equity shares of '' 1.00 each (during FY 2015-16 to 2019-20: 86,76,902 equity shares) during the period of five years immediately preceding 31 March, 2021 on exercise of options granted under the employee stock option plan (ESOP).
v) Shares reserved for issue under options:
For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company, refer note 60. These options are granted to the employees subject to cancellation under circumstance of his cessation of employment with the Company on or before the vesting date.
Capital reserve represents the difference between value of the net assets transferred to the Company in the course of business combinations and the consideration paid for such combinations.
Securities premium is used to record the premium on issue of shares, which will be utilised in accordance with provisions of the Act.
Share option outstanding account
The reserve is used to recognize the grant date fair value of options issued to employees under employee stock option schemes and is adjusted on exercise/ forfeiture of options.
General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.
Retained earnings are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.
Debt instruments through other comprehensive income
This represents the cumulative gains and losses arising on the revaluation of debt instruments measured at fair value through other comprehensive income that have been recognized in other comprehensive income, net of amounts reclassified to profit or loss when such assets are disposed off and impairment losses on such instruments, if any.
26.1 REPAYMENT TERMS AND SECURITY DISCLOSURE FOR THE OUTSTANDING CURRENT BORROWINGS FROM BANKS AS AT 31 MARCH, 2021:
Cash credit facility:
Repayable on demand and secured by way of first pari-passu charge / hypothecation over the current assets both present and future including inventories and book receivables, owned by the Company.
Packing credit facility:
Repayable after 6 months from the date of drawdown by the Company.
Working capital demand loan facility:
Repayable on demand and secured by way of first pari-passu charge / hypothecation over the current assets both present and future including inventories and book receivables, owned by the Company.
Term loan facility (secured):
Repayable in 12 months from the date of drawdown by the company and secured by way of charge over specific movable fixed assets located at Baddi Greenfield unit to the extent of the amount outstanding.
Term loan facility (unsecured):
Repayable in 12 months from the date of drawdown by the Company.
26.2 REPAYMENT TERMS AND SECURITY DISCLOSURE FOR THE OUTSTANDING CURRENT BORROWINGS FROM BANKS AS AT 31 MARCH, 2020:
Cash credit facility:
Repayable on demand and secured by way of first pari-passu charge / hypothecation over the current assets both present and future including inventories and book receivables, owned by the Company.
Packing credit facility:
Repayable after 3 months from the date of drawdown by the Company.
Term loan facility:
Repayable on demand and is secured by an exclusive charge by way of hypothecation over the moveable fixed assets both present and future to the extent of '' 61.00 crores at Pantnagar, Uttarakhand, owned by the Company.
26.3 RATE OF INTEREST: The Company''s current borrowings facilities have an effective weighted-average contractual rate of 3.28 % per annum (31 March, 2020 : 6.04 % per annum) calculated using the interest rates effective for the respective borrowings as at reporting dates.
45. CONTINGENT LIABILITIES AND COMMITMENTS A Contingent liabilities
Guarantees issued on behalf of subsidiary and other companies |
- |
2.30 |
Claims against the Company not acknowledged as debt# |
||
Claims by employees |
1.00 |
1.33 |
Excise duty / service tax / stamp duty matters (refer note 48) |
68.34 |
91.40 |
Sales tax matters (refer note 48) |
84.95 |
92.51 |
Income tax matters * |
78.84 |
26.77 |
Others |
8.57 |
8.57 |
Total |
241.70 |
222.88 |
# Based on discussions with the solicitors / favourable decisions in similar cases / legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision is considered necessary.
* In the event of any unfavourable outcome in respect to such litigations, the liability would be settled against unused minimum alternate tax credits which have not been recognized as an asset in the books of accounts as been explained in note 25.2.
Pursuant to judgement by the Hon''ble Supreme Court of India dated 28 February, 2019, it was held that basic wages, for the purpose of provident fund, should include certain allowances which are common for all employees.
## The utilisations pertains to cases settled during the year against the Company, accordingly the Company deposited amount against aforementioned provision. Adjustments represents amounts reclassified from ''provision of excise / service tax / stamp duty'' to ''provision of sales tax / entry tax''.
Notes:
i) These provisions represent estimates made mainly for probable claims arising out of litigations/disputes pending with authorities under various statutes (Excise duty, Sales tax, Entry tax). The probability and the timing of the outflow with regard to these matters depend on the final outcome of the litigations/disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow.
ii) Discounting obligation has been ignored considering that these disputes relate to Government Authorities.
49. INFORMATION ON LEASE TRANSACTIONS PURSUANT TO IND AS 116 - LEASES
A Assets taken on lease *
The Company has leases for office building, warehouses and related facilities and cars. With the exception of shortterm leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets. The Company currently classifies its right-of-use assets in a consistent manner in leased buildings under property, plant and equipment.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term. The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office buildings and other premises the Company must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Company is required to pay maintenance fees in accordance with the lease contracts.
51. INFORMATION ON SEGMENT REPORTING PURSUANT TO IND AS 108 - OPERATING SEGMENTS Operating segments:
Consumer care business Home care, personal care and health care
Food business Juices, beverages and culinary
Other segments Guar gum, pharma and others
Identification of segments:
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial statements. Operating segments have been identified on the basis of the nature of products.
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income).
Segment assets and liabilities:
Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.
In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2021 and 31 March, 2020.
57. FINANCIAL RISK MANAGEMENT - OBJECTIVES AND POLICIES
The Company''s financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company''s financial assets comprise mainly investments, loans, trade receivables, cash and cash equivalents, other balances with banks and other receivables.
The Company''s financial risk management is an integral part of how to plan and execute its business strategies.
The Company''s activities expose it to market risk, interest rate risk and foreign currency risk. The Board of Directors (''Board'') oversee the management of these financial risks through its Risk Management Committee. The risk management policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Company''s approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company''s Management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company''s financial performance.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
A Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
The Company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them according to Company''s objectives and declared policies in specific context of impact thereof on various segments of financial instruments. The Board provides oversight and reviews the risk management policy on a quarterly basis.
i) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to balance the Company''s position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs comprehensive interest rate risk management. The Company is not exposed to significant interest rate risk as at the respective reporting dates.
ii) Foreign currency risk
The Company operates internationally with transactions entered into several currencies. Consequently the Company is exposed to foreign exchange risk towards honouring of export / import commitments.
Management evaluates exchange rate exposure in this connection in terms of its established risk management policies which includes the use of derivatives like foreign exchange forward contracts to hedge risk of exposure in foreign currency.
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivables. Individual risk limits are also set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-looking information.
Financial assets are written-off when there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the Company. The Company provides for overdue outstanding for more than 90 days other than institutional customers which are evaluated on a case to case basis. The Company''s concentration of risk with respect to trade receivables is low, as its customer''s base is widely spread across the length and breadth of the country.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by Senior Management. Management monitors the Company''s net liquidity position on the basis of expected cash flows vis-a-vis debt service fulfilment obligation.
58. CATEGORY WISE CLASSIFICATION OF FINANCIAL INSTRUMENTS
The fair values of the financial assets and financial liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the financial year 2019-20. The following methods and assumptions were used to estimate the fair values:
i) The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
ii) The fair values of other investments measured at FVTOCI and FVTPL are determined based on observable market data other than quoted prices in active market.
iii) The carrying amount of financial assets and financial liabilities measured at amortised cost in these standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
Financial assets and financial liabilities are measured at fair value in these financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: unobservable inputs for the asset or liability
C Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
(a) Investment in mutual funds: The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.
(b) Investment in debt instruments: The fair value of investments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.
59. DISCLOSURE RELATING TO EMPLOYEE BENEFITS PURSUANT TO IND AS 19 - EMPLOYEE BENEFITS(A) Defined contribution plans
Amount of '' 3.37 crores (31 March, 2020 : '' 3.58 crores) is recognised as an expense and included in employee benefits expense in the Standalone Statement of Profit and Loss under Employees'' Superannuation Fund.
(B) Defined benefit plans Gratuity (funded)
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of 5 continuous years of service as per Payment of Gratuity Act, 1972. However, no vesting condition applies in case of death. The weighted average duration of defined benefit obligation is 7.09 years (31 March, 2020 : 7.08 years). The Company makes contributions to Dabur Employees'' Gratuity Trust, which is funded defined benefit plan for qualifying employees.
Post separation benefit of Directors
Post separation benefit of Directors includes car, telephone, medical and housing facility for eligible Directors.
Description of risk exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such, the
Company is exposed to various risks as follows:
a) Salary increases - Actual salary increases will increase the plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
b) Investment risk - If plan is funded then assets/liabilities mismatch and actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
c) Discount rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability.
d) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact plan''s liability.
(i) The actuarial valuation of plan assets and the present valuation of defined benefit obligation were computed at year end. The present value of the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
(ii) Discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.
(iii) The salary escalation rate is computed after considering the seniority, the promotion and other relevant factors, such as, demand and supply in employment market.
The Company makes contribution towards provident fund which is administered by Dabur India Limited E.PF Trust (âTrustâ). Accordingly, the Company has obtained an actuarial valuation report for its plan assets and based on the below provided assumptions, charged '' 35.64 crores for changes in remeasurement of the defined benefit plans in other comprehensive income during the year ended 31 March, 2020 due to impairment in the value of certain investments of the provident fund trust of the Company. Contribution made by the Company to the trust set-up by the Company during the year is '' 10.68 Crores (31 March, 2020 : '' 11.29 crores).
60. DISCLOSURES REQUIRED PURSUANT TO IND AS 102 - SHARE BASED PAYMENT
Under Employee Stock Option Scheme (ESOP) of the Company, share options of the Company are granted to the senior executives subject to achievement of targets as defined in ongoing vision of the Company. Vesting period ranges from 1 to 5 years. Each option carries the right to the holder to apply for one equity share of the Company at par. There has been no variation in the terms of options during the year. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.
61. The outbreak of Covid-19 pandemic is causing significant disturbance and slowdown of economic activities globally. Subsequent to year-end, many State Goverments have announced lockdown like restrictions due to further spread of Covid-19. The management has considered the possible effects that may result from the pandemic on the recoverability/
carrying value of the assets. Based on the current indicators of future economic conditions, the management expects to recover the carrying amount of the assets, however the management will continue to closely monitor any material changes to future economic conditions. Given the uncertainties, the final impact on Company''s assets in future may differ from that estimated as at the date of approval of these standalone financial statements.
62. The figures of the previous year have been re-grouped / re-classified, wherever necessary, to render them comparable with the figures of the current year.
63. In the opinion of the Board of Directors, current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known / expected liabilities have been made.
Mar 31, 2018
1 Repayment terms and security disclosure for the outstanding non-current borrowings as at 31 March, 2018 and 31
March, 2017:
Secured borrowings facility from banks:
i) Facility of Rs, 100.00 crores, bearing interest rate of 7.25% per annum having balance amount repayable by way of a bullet payment after 37 months from the date of disbursal, i.e., 05 July, 2016. The loan is secured by way of sole hypothecation and equitable mortgage over movable and immovable assets (created by the loan) at Pantnagar, Uttarakhand, owned by the Company.
ii) Facility of Rs, 75.00 crores, bearing interest rate of 6.90% per annum having balance amount repayable by way of bullet payment after 3 years from date of first drawdown, i.e., 26 September, 2016. The loan is secured by way of hypothecation over movable fixed assets at Sonitpur, Assam, owned by the Company.
iii) Facility of Rs, 25.00 crores, bearing interest rate of 6.10% per annum having balance amount repayable by way of bullet payment after 37 months from the date of disbursal, i.e., 16 March, 2017. The loan is secured by way of equitable mortgage over movable and immovable assets at Baddi, Himachal Pradesh and Pantnagar, Uttarakhand, owned by the Company.
* Revenue for the period ended 31 March, 2018 is net of Goods and Service Tax (GST) which is applicable from 1 July, 2017, however, revenue for the periods up to 30 June, 2017 is net of VAT but gross of excise duty. Accordingly, revenue for the year ended 31 March, 2018 is not comparable with the previous year presented in these financial statements. Similarly, cost of goods sold and expenses are also not comparable.
# Represents the amount of budgetary support to be provided by the Government of India for the existing eligible manufacturing units operating under different industrial promotion tax exemption schemes, pursuant to the notification no: F.No. 10(1)/2017-DBA-II/NER issued by the Ministry of Commerce and Industry dated 05 October, 2017. The same has been recorded and disclosed in accordance with the Ind AS 20 ''Government Grants.
* Cost of material consumed includes Rs, 1.56 crores (31 March, 2017: Rs, 1.50 crores) towards research and development, refer note 39.1.
a The Board of Directors at its meeting held on 1 May, 2018 have recommended a payment of final dividend of Rs, 6.25 per equity share (including special dividend of Rs, 5 per equity share) with face value of Rs, 1 each for the financial year ended 31 March, 2018, which amounts to Rs, 1,327.25 crores including dividend distribution tax of Rs, 226.30 crores.
The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognised as a liability.
# Paid to shareholders during the financial year 2017-18.
# based on discussions with the solicitors / favourable decisions in similar cases / legal opinions taken by the Company, the Management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision is considered necessary.
* Sales tax provisions made towards classification matters and towards rate differences matters at various levels including assessing authority / commissioner''s level / Appellate Tribunal and at Hon''ble High Courts.
** Entry tax provisions made towards tax difference matters at Orissa at various levels including Appellate Tribunal and at Hon''ble High Courts.
# Excise provisions made towards classification matters at various levels including Commissioner (Appeal) and Appellate Tribunal.
a Service tax provisions made towards service tax distribution (ISD) matters at various levels including Commissioner (Appeal) and Appellate Tribunal.
Notes:
i) These provisions represent estimates made mainly for probable claims arising out of litigations/disputes pending with authorities under various statutes (Excise duty, Service tax, Sales tax, Entry tax). The probability and the timing of the outflow with regard to these matters depend on the final outcome of the litigations/disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow.
ii) Withdrawal of provision relates to determination of liability in and subsequent payment made by Company in relevant context.
iii) Provisions are made herein for medium risk oriented issues as a measure of abundant precaution.
iv) The Company presumes remote risk possibility of further cash outflow pertaining to contingent liabilities and commitments listed under note 45.
v) Discounting obligation has been ignored considering that these disputes relate to Government Authorities.
2.Information on lease transactions pursuant to Ind AS 17 - Leases A Assets taken on operating lease *
The Company leases out machines and vehicles under non-cancellable operating leases expiring within period not exceeding five years. The leases have varying terms, escalation Clauses and renewal rights. On renewal, the terms of the leases are renegotiated.
3. Information on Segment Reporting pursuant to Ind AS 108 - Operating Segments Operating segments:
Consumer care business Home care, personal care and health care
Food business Juices, Beverages and Culinary
Other segments Guar Gum, Pharma and others
Identification of segments:
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial statements. Operating segments have been identified on the basis of the nature of products.
Segment revenue and results
The expenses and income which are not directly attributable to any business segment are shown as unallowable expenditure (net of unallowable income).
Segment assets and liabilities:
Assets used by the operating segments mainly consist of property, plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.
The measurement principles of segments are consistent with those used in preparation of these financial statements. There are no inter-segment transfers.
* The liquidation of Dabur Tunisie, is under process and is likely to be completed by 31 March, 2019. The liquidation was earlier expected to be completed by 31 March, 2018, but due to certain legal and regulatory compliances under the laws of Tunisia, the completion date was extended.
4 Information on Related Party Transactions pursuant to Ind AS 24 - Related Party Disclosures
Following are the related parties and transactions entered with related parties for the relevant financial year:
A) List of related parties and relationships
i) Subsidiaries
1 H & B Stores Limited 12 Dabur Lanka Private Limited
2 Dermovia Skin Essentials INC 13 Namaste Laboratories LLC
3 Dabur International Limited 14 Urban Laboratories International LLC
4 Naturelle LLC 15 Hair Rejuvenation & Revitalization Nigeria Limited
5 Dabur Egypt Limited 16 Healing Hair Laboratories International LLC
6 African Consumer Care Limited 17 Dabur (UK) Limited
7 Dabur Nepal Private Limited 18 Dabur Consumer Care Private Limited
8 Asian Consumer Care Private Limited 19 Dabur Tunisie (refer note 53)
9 Asian Consumer Care Pakistan Private Limited 20 Dabur Pakistan Private Limited
10 Hobi Kozmetik 21 Dabur Pars
11 RA Pazarlama 22 Dabur South Africa (PTY) Limited
ii) Joint Venture Forum 1 Aviation Private Limited
iii) Key Management Personnel Mr. P. D. Narang, Whole Time Director
Mr. Sunil Duggal, Chief Executive Officer (CEO)
& Whole Time Director
Mr. Lalit Malik, Chief Financial Officer (CFO)
Mr. Ashok Kumar Jain, Vice President (Finance) and Company Secretary
iv) Directors Dr. Anand Chand Burman, Chairman
Mr. Amit Burman, Vice Chairman
Mr. Mohit Burman, Director
Mr. Saket Burman, Director
Mr. P. D. Narang, Whole Time Director
Mr. Sunil Duggal, Chief Executive Officer (CEO)
& Whole Time Director
Mr. Pattamadai Natraja Sarma Vijay,
Independent Director
Mr. Ravindra Chandra Bhargava, Independent Director
Dr. Subbaraman Narayan, Independent Director
Dr. Ajay Kumar Dua, Independent Director Mr. Sanjay Kumar Bhattacharyya, Independent Director
Ms. Falguni Sanjay Nayar, Independent Director
v) Entities in which a Director or his/her Jetways Travels Private Limited relative is a member or Director 1 Aviva Life Insurance Company Limited
Lite Bite Foods Private Limited
Universal Sompo General Insurance Company
vi) Relatives of KMPs/Directors* Mr. Vivek Chand Burman, father of Director
Ms. Asha Burman, mother of Director
vii) Post employment benefit plan entities Dabur India Limited EPF Trust
Dabur Gratuity Trust Dabur Superannuation Trust
5 Capital Management - Policies and Procedures
For the purpose of the Company''s capital Management, capital includes issued equity share capital, security premium and all other equity reserves attributable to the equity holders of the Company.
The Company'' s capital Management objectives are:
- to ensure the Company''s ability to continue as a going concern
- to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations, if any.
In order to achieve this overall objective, the Company''s capital Management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2018 and 31 March, 2017.
Loan covenants
Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants which include Debt Service Coverage Ratio (DSCR), Fixed Asset Coverage Ratio (FACR) etc. The Company has complied with these covenants throughout the reporting period.
58 Financial Risk Management - Objectives and Policies
The Company''s financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company''s financial assets comprise mainly investments, loans, trade receivables, cash and cash equivalents, other balances with banks and other receivables.
The Company''s financial risk Management is an integral part of how to plan and execute its business strategies.
The Company''s activities expose it to market risk, interest rate risk and foreign currency risk. The Board of Directors (''Board'') oversee the Management of these financial risks through its Risk Management Committee. The risk Management policy of
the Company formulated by the Risk Management Committee and approved by the Board, states the Company''s approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company''s Management, the structure for managing risks and the framework for risk Management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company''s financial performance.
The following disclosures summarize the Company''s exposure to financial risks and information regarding use of derivatives employed to manage exposures to such risks. Quantitative sensitivity analysis have been provided to reflect the impact of reasonably possible changes in market rates on the financial results, cash flows and financial position of the Company.
A Market Risk
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
The Company manages market risk through a Risk Management Committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them according to Company''s objectives and declared policies in specific context of impact thereof on various segments of financial instruments. The Board provides oversight and reviews the risk Management policy on a quarterly basis.
i) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to balance the Company''s position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs comprehensive interest rate risk Management. The Company is not exposed to significant interest rate risk as at the respective reporting dates.
ii) Foreign Currency Risk
The Company operates internationally with transactions entered into several currencies. Consequently the Company is exposed to foreign exchange risk towards honoring of export / import commitments.
Management evaluates exchange rate exposure in this connection in terms of its established risk Management policies which includes the use of derivatives like foreign exchange forward contracts to hedge risk of exposure in foreign currency.
The above table represents total exposure of the Company towards foreign exchange denominated assets and liabilities. The details of exposures hedged using forward exchange contracts are given as a part of note 55 A and the details of unhedged exposures are given as part of note 55 B.
Foreign Currency Sensitivity
The below table demonstrates the sensitivity to a 1% increase or decrease in the foreign currencies against '', with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 1% represents Management''s assessment of reasonably possible change in foreign exchange rate. 1% increase or decrease in foreign exchange rates will have the following impact on profit before tax:
iii) Price Risk
The Company''s exposure to price risk arises from investments held and classified as FVTPL or FVOCI. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.
Sensitivity Analysis
Profit or loss and equity is sensitive to higher/lower prices of instruments on the Company''s profit for the year:
B Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior Management. Management monitors the Company''s net liquidity position on the basis of expected cash flows vis-a-vis debt service fulfillment obligation.
Maturity Profile of Financial Liabilities
The table below analysis derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows:
C Credit Risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivables. Individual risk limits are also set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The Company considers reasonable and supportive forward-looking information.
Financial assets are written-off when there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the Company. The Company provides for overdue outstanding for more than 90 days other than institutional customers which are evaluated on a case to case basis. The Company''s concentration of risk with respect to trade receivables is low, as its customer''s base is widely spread across the length and breadth of the country.
During the year, the Company has recognized loss allowance of Rs, 1.25 crores (31 March, 2017 : Rs, Nil) under 12 month ECL model. No significant changes in estimation techniques or assumptions were made during the reporting period.
Concentration of Financial Assets
Concentration of credit risk with respect to trade receivables are limited, due to the Company''s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.
6.Category wise Classification of Financial Instruments
The fair values of the financial assets and financial liabilities are defined as the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the financial year 2016-17. The following methods and assumptions were used to estimate the fair values:
i) The fair values of investments in mutual fund units is based on the Net Asset Value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
ii) The fair values of other investments measured at FVTOCI and FVTPL are determined based on observable market data other than quoted prices in active market.
iii) The carrying amount of financial assets and financial liabilities measured at amortised cost in these financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
Financial assets and financial liabilities are measured at fair value in these financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: unobservable inputs for the asset or liability
* During the year, there were no transfers between Level 1 and Level 2 fair value measurements.
C Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
(a) Investment in mutual funds: The fair values of investments in mutual fund units is based on the Net Asset Value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.
(b) Investment in debt instruments: The fair value of investments that are not traded in an active market is determined using market approach and valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.
7. Disclosure relating to employee benefits pursuant to Ind AS 19 - Employee Benefits
(A) Defined contribution plans
Amount of Rs, 3.80 crores (31 March, 2017 : Rs, 3.97 crores) is recognized as an expense and included in employee benefits expense in the Standalone Statement of Profit and Loss under Employees'' Superannuation Fund.
(B) Defined benefit plans Gratuity (funded)
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payments to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs on completion of 5 continuous years of service as per Payment of Gratuity Act, 1972. However, no vesting condition applies in case of death. The weighted average duration of defined benefit obligation is 7.06 years (31 March, 2017 : 7.07 years).
The Company makes contributions to Dabur Employees'' Gratuity Trust, which is funded defined benefit plan for qualifying employees.
Post separation benefit of Directors
Post separation benefit of Directors includes car, telephone, medical and housing facility for eligible Directors. Description of risk exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such Company is exposed to various risks as follows:
(a) Salary increases - Actual salary increases will increase the plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
(b) Investment risk - If plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
(c) Discount rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability.
(d) Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
(C) Provident Fund
The Company makes contribution towards provident fund which is administered by Dabur India Limited E.P.F Trust. The rules of the Company''s provident fund administered by a trust, requires that if the trust is unable to pay interest at the rate declared by the Government under Para 60 of the Employees'' Provident Funds Scheme, 1972 for the reason that the return on investments is less or for any other reason, then the deficiency shall be made good by the Company making interest shortfall a defined benefit plan. Accordingly, the Company has obtained actuarial valuation and based on the below provided assumption there is no deficiency as at the balance sheet date. Hence, the liability is restricted towards monthly contribution only.
Contribution made by the Company to the provident fund trust set-up by the Company during the year is Rs, 9.04 Crores (31 March, 2017 : Rs, 8.28 crores).
8. Disclosures required pursuant to Ind AS 102 - Share Based Payment
Under Employee Stock Option Scheme (ESOP) of the Company, share options of the Company are granted to the senior executives subject to achievement of targets as defined in ongoing vision of the Company. Vesting period ranges from 1 to
5 years. Each option carries the right to the holder to apply for one equity share of the Company at par. There has been no variation in the terms of options during the year. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.
Subsequent to the financial year ended 31 March, 2018, the Nomination and Remuneration Committee of the Board of Directors of the Company in its meeting held on 19 April, 2018 has cancelled 15,55,900 stock options granted to the employees of the Company and its subsidiaries relevant to the financial year ended 31 March, 2018.
* Nil Share options were exercised on a regular basis throughout the year. The weighted average share price during the period was Nil.
# The options outstanding as at 31 March, 2018 were with the exercise price of Rs, 1.00 to Rs, 84.60. The weighted average of the remaining contractual life is 0.12 years.
9. Previous year amounts have been re-grouped / re-casted wherever considered necessary, to make them comparable with those of the current year.
10. In the opinion of the Board of Directors, current assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known / expected liabilities have been made.
Mar 31, 2017
Notes:
1. There is no default in repayment of principal loan or interest thereon.
2. No Guarantee Bond has been furnished against any loan.
3. Cash Credits are secured by hypothecation of inventories and book debts to bankers in consortium ranking pari passu among Punjab National Bank , Standard Chartered Bank, Hongkong & Shanghai Banking Corporation Ltd, IDBI Bank Ltd, Citi Bank NA,HDFC Bank Ltd, Bank of Nova Scotia and Bank of Tokyo Mitsubishi UFJ Ltd.
ii) Lease rent credited to Profit & Loss account of the year Rs 10.01 (Previous year Rs 9.07 ).
iii) Irrevocable lease agreement relates to buildings, lease period not exceeding five years in respect of any arrangement.
iv) Figures in bracket relates to previous year.
4. A. Related Party Disclosures:
(a) Related parties where control exists:-
H & B Stores Limited Domestic Wholly Owned Subsidiary
Dermoviva Skin Essentials Inc Foreign wholly Owned Subsidiary
Asian Consumer care Pvt. Ltd., Dhaka Foreign Subsidiary
Dabur Nepal Pvt. Ltd., Nepal Foreign Subsidiary
Dabur Egypt Ltd., Egypt Foreign wholly Owned Subsidiary
Dabur (UK) Ltd., UK Foreign wholly Owned Subsidiary
Dabur International Ltd., UAE Foreign wholly Owned Subsidiary
African Consumer care Limited, Nigeria Foreign wholly Owned Subsidiary
Asian Consumer care Pakistan Pvt. Ltd., Pakistan Foreign Subsidiary
Naturelle LLC, UAE Foreign wholly Owned Subsidiary
Dabur Pakistan Pvt Ltd. Foreign wholly Owned Subsidiary
Hobi Kozmetik, Turkey Foreign wholly Owned Subsidiary
Ra Pazarlama, Turkey Foreign wholly Owned Subsidiary
Namaste Laboratories LLC, US Foreign wholly Owned Subsidiary
Hair Rejuvenation & Revitalization Nigeria Ltd. Foreign wholly Owned Subsidiary
Healing Hair Lab International LLC, USA Foreign wholly Owned Subsidiary
Urban Lab International LLC, USA Foreign wholly Owned Subsidiary
Dabur Lanka (Pvt.) Ltd, Sri Lanka Foreign wholly Owned Subsidiary
Dabur Consumer care Pvt Ltd, Sri lanka Foreign wholly Owned Subsidiary
Dabur Tunisie, Tunisia Foreign wholly Owned Subsidiary
Dabur Pars, Iran Foreign wholly Owned Subsidiary
Dabur South Africa (PTY) Ltd. Foreign wholly Owned Subsidiary
(b) Other related parties in transaction with the company:
(I) Joint Venture /Partnership : Forum 1 Aviation Private Limited
(II) Key Management Personnel : 1. Mr. P D Narang, Whole Time Director
2. Mr. Sunil Duggal, CEO cum Whole Time Director
3. Mr Lalit Malik, Chief Financial Officer (CFO)
4. Mr. A K Jain, VP (Finance) and Company Secretary
(III) Directors
1. Dr. Anand C Burman, Chairman 2. Mr. Amit Burman, Vice Chairman
3. Mr. Mohit Burman, Director 4. Mr. Saket Burman, Director
5. Mr. P. N. Vijay, Independent Director 6. Mr. R C Bhargava, Independent Director
7. Dr. S Narayan, Independent Director 8. Dr. Ajay Dua, Independent Director
9. Mr. Sanjay Kumar Bhattacharyya, Independent Director 10. Mrs. Falguni Nayar, Independent Director
(IV) Others
a) Sharing/Directors in Common
1. Jetways Travels Private Limited 3. Aviva Life Insurance Company Limited
2. Lite Bite Foods Private Limited 4. Universal Sompo General Insurance Company
b) Relatives of Directors
1. Mr. V C Burman 2. Mrs. Asha Burman
c) Post employment benefit plan
1. Dabur India E.PF Trust 2. Dabur Gratuity Trust
3. Dabur Superannuation Trust
*Figures in bracket relates to previous year as on 31.03.2016 Notes:
A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt. Ltd Rs 427.47 (Rs 320.05) and Dabur Lanka Pvt Ltd Rs 75.92 (Rs. 101.98)
B. Item referred to in 2 above includes Sales to Dabur International Ltd, Naturelle LLC, Dabur Nepal Pvt Ltd, Asian Consumer Care Ltd Rs 10.78, Rs 24.44, Rs 4.19, Rs 15.07 respectively (Rs 6.76, Rs 28.48, Rs 10.12, Rs. 14.13 respectively)
C. Item referred to in 3 above relates to royalty paid to Dermoviva Skin Essentials Inc. Rs Nil (Rs 0.13)
D. Item referred to in 4 above relates to joint venture expenses paid to Forum 1 Aviation Pvt Ltd Rs 3.91 (Rs 4.01)
E. Item referred to in 8 above includes two ESOP given to Dabur International Ltd. Rs 3.08 (Rs 10.48)
F. Item referred to in 9 above relates to interest received on security deposit from Forum 1 Aviation Pvt Ltd Rs 0.03 (Rs 0.03)
G. Figures in bracket relate to previous year
H. There is no provision against the outstanding balance and no expense booked during the year in respect of bad and doubtful debts due from related parties.
51. Disclosures required by INDAS 102 Share Based Payment
Under Employee Stock Option Scheme of the company, share options of the company are granted to the senior executives subject to achievement of targets as defined in ongoing vision of the company. Vesting period is 1 to 5 years. Each option carries the right to the holder to apply for one equity share of the company at par. There has been no variation in the terms of options during the year. The share options are valued at the fair value of the options as on the date of grant using Black Scholes pricing model. There is no cash settlement alternative.
23,79,340 share options were exercised on a regular basis throughout the year. The weighted average share price during the period was Rs. 280.14.
87,98,312 share options outstanding as on March 31, 2017, the exercise price is Re. 1 to Rs. 84.60. The weighted average of the remaining contractual life is 1.2 years.
Fair value of the options has been calculated using Black-Scholes Option Pricing Model. Following inputs were used to determine the fair value for options granted during the year:
The measure of volatility used is the annualized standard deviation of the continuously compounded rates of return of stock over the expected lives of different vests, prior to grant date. Volatility has been calculated based on the daily closing market price of the Companies stock on NSE over these years.
Note
Post the closure of financial year 2016-17, the Nomination and Remuneration Committee of the Board of Directors of the company in its meeting held on 21.04.2017 has cancelled 21,29,961 stock options granted to the employees of the company and its subsidiaries relevant to the Financial year 2016-17.
5. Financial Instruments - Accounting classifications and fair value measurements
The fair value of the assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to the account for the expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data
Note: During the reporting period ended March 31, 2017 and March 31, 2016, there were no transfers between level 1 and level 2 fair value measurements.
53. Financial Risk Management Objectives and Policies
The Company''s financial risk management is an integral part of how to plan and execute its business strategies.
Market risk
Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
The company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them according to Company''s objectives and declared policies in specific context of impact thereof on various segments of financial instruments. The Board provides oversight and reviews the Risk management policy on a quarterly basis.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to balance the Company''s position with regards to interest income and interest expense and to manage the interest rate risk, treasury performs a comprehensive interest rate risk management.
The company is not exposed to significant interest rate risk as at the respective reporting dates.
Foreign currency risk
The Company operates internationally with transactions entered into several currencies. Consequently the Company is exposed to foreign exchange risk towards honoring of export/ import commitments.
Management evaluates exchange rate exposure in this connection in terms if its established risk management policies which includes the use of derivatives like foreign exchange forward contracts to hedge risk of exposure in foreign currency.
Credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivables. Individual risk limits are set accordingly.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. The company considers reasonable and supportive forward-looking information.
Financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in a repayment plan with the company. The company provides for overdue outstanding for more than 90 days other than institutional customers which are evaluated on a case to case basis.
The Company''s concentration of risk with respect to trade receivables is low, as its customer''s base is widely spread across the length and breadth of the country.
6. In pursuance of complaint lodged under whistle blower mechanism, management, by deputing an in house team of investigation and conduct of special audit, unearthed financial irregularity of around Rs.53 lakh in municipal payment documents committed by an officer of South Zone and identified pecuniary nexus of his near relatives with few C&F agents. The money has been recovered from him. The same has no impact on turnover, net profits, total assets, total liabilities and net worth. The C&F agents involved in alleged misdeed have already been terminated and the alleged officer had also been made to exit the company. The management has already taken measures to strengthen Internal Financial Controls with reference to payment to Government authorities by way of enlarging scope of internal audit and laying down procedure of abstention of periodic confirmation from all C&F agents to the effect of non-existence of their pecuniary relationship with any officer of the company or his relatives, direct or indirect, to dispense with any reoccurrence of similar eventuality. This incident and the investigation outcome has been reported by the management to the auditors and the Audit committee.
7. Amount due to Micro & Small enterprises under MSMED Act, 2006 is Rs. 19.14 (previous year Rs. 11.27). Identification of such enterprises has been made on the basis of their disclosure in correspondences, bills to the effect as mandated for them. There was neither any default nor any delay in payment made to such enterprises, credit terms were of were within period prescribed under statute.
8. Sale of Services Rs. 0.01 (previous year Rs 0.07) relates to hiring charges paid by customers for using Company''s machines.
9. Exchange gain works out to Rs 6.49 (Previous Year Rs. 11.91) and exchange loss Rs 10.67 (Previous year Rs. 17.61) and their net impact have been debited to Profit & Loss Account.
10. a) Figures for the previous year have been rearranged/ regrouped as and when necessary in terms of current year''s grouping.
b) Figures are rounded off to nearest rupees in crores.
Mar 31, 2015
1. Company Information
Dabur India Limited (the ''Company'') is a domestic public limited
company and is listed on the Bombay Stock Exchange Ltd. [BSE], National
Stock Exchange of India Ltd. [NSE] and Metropolitan Stock Exchange of
India Ltd. [mSXI] (formerly known as MCX). The company is one of the
leading FMCG players dealing in consumer care and food products. The
Company has manufacturing facilities across the length & breadth of the
country and Research and Development center in U.P. (Sahibabad),
selling arrangements being primarily in India through independent
distributors except for institutional sales which are handled directly
by the company.
b. Rights, preference and restrictions attached to Equity Shares
i. The Company has one class of equity shares having a par value of
Re.1 per share. Each shareholder is eligible for one vote per share
held. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting
except in the case of interim dividend. In the event of liquidation,
the equity shareholders are eligible to receive the remaining assets of
the company after distribution of all preferential amounts, in
proportion to their shareholding.
ii. Shares of the company are ordinarily transferable provided:
a. Instrument of transfer is in form prescribed under the act & duly
stamped and executed by/on behalf of transferor and transferee.
b. Transferee consenting or replying affirmatively within specified
period of his receipt of notice under Section 56(1) of Companies Act,
2013 issued by the company in respect of application of transfer of
registration of shares made by the transferor.
c. Transferee is not of unsound mind.
d. Company does not have any lien on shares under application of
transfer.
Term therein:
Options granted to an employee are subject to cancellation under
circumstances of his cessation of employment with the company on or
before vesting date.
Notes:
1. There is no default in repayment of principal loan or interest
thereon.
2. No Guarantee Bond has been furnished against any loan.
3. Cash Credits are secured by hypothecation of inventories and book
debts to bankers in consortium ranking pari passu among Punjab National
Bank, Standard Chartered Bank, Hongkong & Shanghai Banking Corporation
Ltd., Royal Bank of Scotland, IDBI Bank Ltd., Citi Bank NA, HDFC Bank
Ltd., Bank of Nova Scotia and Bank of Tokyo Mitsubishi UFJ Ltd.
Note:
1. Addition to the above Tangible Fixed Assets includes 0.94 (Previous
year 1.91) incurred at company''s inhouse R&D facilities at Sahibabad.
2. Leasehold Land relates to:
a) 94620 sq yards of land at Sahibabad taken on lease for a period of
90 years in the year of 1972.
b) 1059 sq yards of land at Sahibabad taken on lease for a period of 90
years in the year of 1985.
c) 6508 sq mtrs of land at Alwar taken on lease for a period of 99
years in the year of 1981.
d) 58 Kanals of land at Jammu taken on lease for a period of 90 years
in the year of 2002.
e) 294.82 Katha of land at Pithampur taken on lease for a period of 30
years in the year of 1997.
f) 7972 sq mtrs of land at Nashik taken on lease for a period of 95
years in the year of 1990.
g) 3000 sq mtrs of land at Kaushambi taken on lease for a period of 90
years in the year of 1996.
h) 16122.35 sq mtrs of land at Kaushambi taken on lease for a period of
30 years in the year of 1997.
i) 100.53 acres of land at Sandila taken on lease for a period of 99
years in the year of 1999.
j) 3640 sq mtrs of land at Mumbai taken on lease for a period of 99
years in the year of 1964.
k) 67968.75 sq mtrs of land at Rudrapur taken on lease for a period of
90 years in the year of 2004.
l) 18000 sq mtrs of land at Pant Nagar taken on lease for a period of
81 years in the year 2014.
m) All lease arrangements are of the nature of operating lease.
2. Depreciation charge amounting to Rs. 71.49 (PY: Rs. 53.91) allocated
between statement of Profit and Loss Rs. 65.97 (PY: Rs. 53.91) and
against Surplus Rs. 5.57 (PY: Nil), the latter being towards charging
off overaged assets under new dispensation of Act.
3. Contingent Liabilities As at As at
March 31,2015 March 31,2014
Claims against the company not
acknowledged as debts:
1. Civil cases filed against the
company 7.93 21.78
2. Claims by employees 0.86 0.72
3. Excise duty/service tax matters 133.24 136.53
4. Sales tax matters 44.89 17.91
5. Income tax matters 0.37 9.35
Total 187.29 186.29
i. Resulting outflows against above liabilities, pending before Sales
Tax DC/Tribunal/CCT''s, if mature, are expected to be in succeeding
financial year.
ii. Withdrawal of provision relates to crystallization of liability in
actual term & subsequent payment made by company in relevant context.
iii. Provisions are made herein for medium risk oriented issues as a
measure of abundant precaution.
iv. Company presumes remote risk possibility of further cash outflow
pertaining to contingent liabilities and commitments listed in point 21
& 22 above.
G. The basis used for determination of expected rate of return is
average return on long term investment in Government bonds.
H. The estimate of future salary increase take in-to account regular
increment , promotional increases and increment.
I. Demographics assumptions take into account mortality factor as per
IALM (2006-08) ultimate criteria, employees and normal retirement age
at 58.
J. Particulars on planned assets have been ascertained on the basis of
last confirmation from Insurance Company.
K. CY- Current year, PY - Previous year
ii) Lease rent debited to Profit & Loss account of the year Rs 1.03
(Previous year Rs 0.99).
iii) Irrevocable lease agreement relates to flat, machine & vehicle,
lease period not exceeding five years in respect of any arrangement
iv) Figures in bracket relates to previous year
50. Investment in Joint Venture Information (Pursuant to AS-27)
(a) The company is a party to joint venture agreement controlling the
management of Forum 1 Aviation Private Limited, a domestic Jointly
Controlled Corporate Entity (JCE) with part of its operation akin to
jointly controlled operation, the main object of the JCE being
maintenance of aircraft for use of venturers or otherwise. The
contributions of venturers are towards capital build up of the JCE and
periodic contribution towards cost of maintenance of aircraft. Variable
component of cost of maintenance is borne by user of the aircraft in
proportion to their actual usage and fixed component is shared by all
the venturers in proportion to their capital contribution. The
participation of the venturers in the affairs of the management of the
JCE is through representation in the composition of Board of Directors
as agreed in shareholder''s agreement.
(b) Share of the company in assets, outside liability, net worth,
income and expenses not being accounted for herein works out to Rs 9.67
(Previous year 10.33), Rs 1.20 (Previous year 2.63), Rs 8.47 (Previous
year 7.70), Rs 5.42 (Previous year 4.84) and Rs 4.63 (Previous year
4.12) respectively in respect of year under audit as per un-audited
accounts of the JCE.
(c) Stake of the company in terms of percentage of total subscribed and
paid up capital of JCE is 16.67%. Said amount Rs 4.77 (Rs 4.77) appears
under investment head in balance sheet of the company.
(d) Company''s commitment towards revenue expenditure of the JCE
amounting to Rs 5.05 (Previous year Rs 4.68) has been charged to profit
and loss account under the head general charges.
(e) The company has furnished guarantee bond for Rs 7.14 (previous year
Rs 7.14) in respect of borrowing availed by the JCE for acquisition of
aircraft which forms part of point 22 of these notes.
(f) No income from said investment, unless realized in cash, is
recognized in this standalone account.
Notes:
A. Item referred to in 1 above includes Purchases from Dabur Nepal Pvt.
Ltd. Rs. 410.05 (Rs. 384.59).
B. Item referred to in 2 above includes Sales to Dabur International
Ltd., Naturelle LLC, Asian Consumer Care Pakistan (Pvt) Ltd., Asian
Consumer Care Ltd. Rs. 19.17, Rs. 23.85, Rs. 5.41, Rs. 12.39
respectively (Rs. 16.58, Rs. 26.86, Rs. 16.95,10.11 respectively).
C. Item referred to in 3 above relates to royalty paid to Dermoviva
Skin Essentials Inc. Rs. 0.12 (Rs. 0.12).
D. Item referred to in 4 above relates to joint venture expenses paid
to Forum 1 Aviation Pvt. Ltd. Rs. 5.05 (Rs. 4.68).
E. Item referred to in 8 above relates to ESOP given to Dabur
International Ltd. Rs. 5.85 (Rs. 2.66).
F. Item referred to in 9 above relates to interest received on security
deposit from Forum 1 Aviation Pvt. Ltd. Rs. 0.02 (Rs. 0.02).
G. Item referred to in 11 above relates to loan given to H & B stores
Ltd. Rs. Nil (Rs. 0.90).
H. Item referred to in 12 above relates to loan repaid by H & B stores
Ltd. Rs. Nil (Rs. 2.10).
I. Item referred to in 13 above relates to investment in equity shares
of Forum 1 Aviation Pvt. Ltd. Rs. Nil (Rs. 0.21) and H & B Stores Ltd.
Rs. 4.00 (Rs. 5.20).
J. Figures in bracket relate to previous year.
4. The company''s freehold land situated at Sahibabad measuring about
7.58 acres was acquired by U.P. Government under Land Acquisition Act
and the State Government had allotted and given possession of about
4.72 acres of land on lease to the Company in lieu of acquired land.
The company has filed a claim for compensation of Rs 5.72 before the
Office of Special Land Acquisition Officer, Ghaziabad against the land
so acquired. However, keeping in view the generally accepted accounting
practice, the said claim has not been considered in the books of
accounts.
5. Loans and Advances include Rs. 0.49 (Previous year Rs. 0.49 ) paid
by the Company to Excise authorities on behalf of Sharda Boiron
Laboratories Limited, now known as SBL Limited, in respect of excise
duty demand of Rs 0.68 raised by the District Excise Officer,
Ghaziabad, against the Company and Sharda Boiron Laboratories Limited.
The Hon''ble Supreme Court of India had concurred with the order of the
District Excise Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the
Hon''ble Supreme Court of India, which was also decided against the
Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron
Laboratories Limited in favour of the Company and as per the terms and
conditions of the contract executed with them, the recovery proceedings
have been initiated by the Company against Sharda Boiron Laboratories
Limited for Rs. 0.49 by invoking the arbitration clause. The matter is
pending before Hon''ble High Court of Delhi for the appointment of an
arbitrator. The balance amount of Rs. 0.21 along with interest
demanded by the Excise Authorities has been paid directly by Sharda
Boiron Laboratories Limited to Excise Authorities. During the year
1991-92 the company had received a refund of Rs 0.06, pursuant to the
decision of Hon''ble Supreme Court in this regard. Necessary adjustments
in respect of recovery/refund will be made as per the arbitration
proceedings.
6. Amount due to Micro & Small enterprises under MSMED Act, 2006 is
Rs. 5.07 (previous year Rs. 7.89). Identification of such enterprises
has been made on the basis of their disclosure in correspondences,
bills to the effect as mandated for them. There was neither any
default nor any delay in payment made to such enterprises, credit terms
where of were within period prescribed under statute
7. Sale of Services Rs. 0.10 (previous year Rs. 0.17) relates to
hiring charges paid by customers for using Company''s machines.
8. Exchange gain works out to Rs. 5.07 (Previous Year Rs. 9.55) and
exchange loss Rs. 8.79 (Previous year Rs. 16.41) and their net impact
have been debited to Profit & Loss Account under the head "Finance
Cost".
9. Exceptional item relates to investment in H & B Stores Limited, a
wholly owned subsidiary, written off during the year on account of
Honourable High Court Delhi approving investee''s application made under
Section 100(1)(b) of Companies Act, 1956 for reduction of share capital
against cancellation of 239568708 numbers of equity shares of Re. 1
each not being represented by available assets.
10. Change in accounting practice
Following change in assumption of lifespan of fixed assets under
Schedule II of Companies Act, 2013, over aged fixed assets have been
reduced to their residual values with consequent reduction amounting to
Rs. 5.57 (Net off Rs. 1.89 towards deferred tax impact, thereon) has
been charged to surplus under "Reserves and Surplus" head in balance
sheet. In addition to above, remaining items of fixed assets have been
subjected to depreciation charge at rates which reduce them to their
residual values under their revised lifespan which led to decrease in
profit by Rs. 3.88 vis-a-vis previous year''s practice."
11. a. Figures for the previous year have been rearranged/regrouped as
and when necessary in terms of current year''s grouping. b. Figures are
rounded off to nearest rupees in crores.
Mar 31, 2014
1. COMPANY INFORMATION
Dabur India Limited (the ''Company'') is a domestic public limited
company and is listed on the Bombay Stock Exchange Limited [BSE],
National Stock Exchange of India Limited [NSE] and MCX Stock Exchange
Limited [MCX]. The company is one of the leading FMCG players dealing
in Consumer Care and Food Products. The Company has manufacturing
facilities across the length & breadth of the country and Research and
Development Center in U.P. (Sahibabad), selling arrangements being
primarily in India through independent distributors except for
institutional sales which are handled directly by the company.
2. CONTINGENT LIABILITIES
Claims against the company not acknowledged as debts:
(1) Civil cases filed against the company 21.78 7.60
(2) Claims by employees 0.72 0.58
(3) Excise duty/service tax matters 136.53 76.61
(4) Sales tax matters 17.91 12.72
(5) Income tax matters 9.35 0.21
Total 186.29 97.72
3. CHANGE IN ACCOUNTING PRACTICE
Pursuant to the withdrawal of mandatory status of AS-30, 31 & 32, the
applicability of the same has been discontinued in current financial
year. As a result, investments held for sale in non-current category
have been accounted for at cost and current investments at lower of
cost and market value. This contributed to reduction in profit (shown
under extra-ordinary item) and value of current investment by Rs. 0.72
each, also there is decrease in value of non-current investment by Rs.
0.66 and net worth by Rs. 1.38 for the current period ended 31st
March''14.
4. INVESTMENT IN JOINT VENTURE INFORMATION (PURSUANT TO AS-27)
(a) The company is a party to joint venture agreement controlling the
management of Forum 1 Aviation Limited, a domestic Jointly Controlled
Corporate Entity (JCE) with part of its operation akin to jointly
controlled operation , the main object of the JCE being maintenance of
aircraft for use of venturers or otherwise. The contributions of
venturers are towards capital build up of the JCE and periodic
contribution towards cost of maintenance of aircraft. Variable
component of cost of maintenance is borne by user of the aircraft in
proportion to their actual usage and fixed component is shared by all
the venturers in proportion to their capital contribution. The
participation of the venturers in the affairs of the management of the
JCE is through representation in the composition of Board of Directors
as agreed in shareholder''s agreement.
(b) Share of the company in assets, outside liability, net worth,
income and expenses not being accounted for herein works out to
Rs.10.33 (Previous year Rs. 9.52), Rs. 2.63 (Previous year Rs. 3.47),
Rs. 7.70 (Previous year Rs. 6.05), Rs.4.84 (Previous year Rs. 5.26) and
Rs. 4.12 (Previous year Rs. 4.42) respectively in respect of year under
audit as per un-audited accounts of the JCE.
(c) Stake of the company in terms of percentage of total subscribed and
paid up capital of JCE is 16.67%. Said amount Rs.4.77 C 4.56) appears
under investment head in balance sheet of the company.
(d) Company''s commitment towards revenue expenditure of the JCE
amounting to Rs.4.68 (Previous year Rs.5.42) has been charged to profit
and loss account under the head general charges.
(e) The company has furnished guarantee bond for Rs. 7.14 (previous
year Rs. 7.14) in respect of borrowing availed by the JCE for
acquisition of aircraft which forms part of point 23 of these notes.
(f) No income from said investment, unless realized in cash, is
recognized in this stand alone account.
5. A. RELATED PARTY DISCLOSURES (AS REQUIRED UNDER AS-18)
(a) Related parties controlled directly:-
H & B Stores Limited - (Domestic Wholly Owned Subsidiary)
Dabur International Ltd., UAE - (Foreign Wholly Owned Subsidiary)
(b) Related parties controlled indirectly:-
Dermoviva Skin Essentials Inc. - (Foreign wholly Owned Subsidiary)
Asian Consumer Care Pvt. Ltd., Dhaka - (Foreign Subsidiary)
Dabur Nepal Pvt. Ltd., Nepal - (Foreign Subsidiary)
Dabur Egypt Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Dabur (UK) Ltd., UK - (Foreign Wholly Owned Subsidiary)
African Consumer Care Limited, Nigeria - (Foreign Wholly Owned
Subsidiary)
Asian Consumer Care Pakistan (Pvt.) Ltd., Pakistan - (Foreign
Subsidiary)
Naturelle LLC, UAE - (Foreign Wholly Owned Subsidiary)
Dabur Egypt Trading Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Hobi Kozmetik, Turkey - (Foreign Wholly Owned Subsidiary)
Ra Pazarlama, Turkey - (Foreign Wholly Owned Subsidiary)
Namaste Laboratories LLC, US - (Foreign Wholly Owned Subsidiary)
Hair Rejuvenation & Revitalization Nigeria Ltd. - (Foreign Wholly
Owned Subsidiary)
Healing Hair Laboratories International LLC, USA - (Foreign Wholly
Owned Subsidiary)
Urban Laboratories International LLC, USA - (Foreign Wholly Owned
Subsidiary)
Dabur Lanka (Pvt.) Ltd, Sri Lanka - (Foreign Wholly Owned Subsidiary)
Namaste Cosmeticos Ltda, Brazil - (Foreign Wholly Owned Subsidiary)
Dabur Consumer Care (Pvt) Ltd, Sri Lanka - (Foreign Wholly Owned
Subsidiary)
Dabur Tunisie, Tunisia - (Foreign Wholly Owned Subsidiary)
(c) Other related parties in transaction with the company:
(I) Joint venture /Partnership : Forum 1 Aviation Limited
(II) Key Management Personnel : (Whole Time Directors)
1. P D Narang 2. Sunil Duggal
6. The company''s freehold land situated at Sahibabad measuring about
7.58 acres was acquired by U.P. Government under Land Acquisition Act
and the State Government had allotted and given possession of about
4.72 acres of land on lease to the Company in lieu of acquired land.
The company has filed a claim for compensation of Rs. 5.72 before the
Office of Special Land Acquisition Officer, Ghaziabad against the land
so acquired. However, keeping in view the generally accepted accounting
practice, the said claim has not been considered in the books of
accounts.
7. Loans and Advances include Rs. 0.49 (Previous year Rs. 0.49 ) paid
by the Company to Excise authorities on behalf of Sharda Boiron
Laboratories Limited, now known as SBL Limited, in respect of excise
duty demand of Rs. 0.68 raised by the District Excise Officer,
Ghaziabad, against the Company and Sharda Boiron Laboratories Limited.
The Hon''ble Supreme Court of India had concurred with the order of the
District Excise Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the
Hon''ble Supreme Court of India, which was also decided against the
Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron
Laboratories Limited in favour of the Company and as per the terms and
conditions of the contract executed with them, the recovery proceedings
have been initiated by the Company against Sharda Boiron Laboratories
Limited for Rs. 0.49 by invoking the arbitration clause. The matter is
pending before Hon''ble High Court of Delhi for the appointment of an
arbitrator. The balance amount of Rs. 0.21 along with interest demanded
by the Excise Authorities has been paid directly by Sharda Boiron
Laboratories Limited to Excise Authorities. During the year 1991-92 the
company had received a refund of Rs. 0.06, pursuant to the decision of
Hon''ble Supreme Court in this regard.
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8. Amount due to Micro & Small enterprises under MSMED Act, 2006 is
Rs. 7.89 (previous year Rs. 4.75). Identification of such enterprises
has been made on the basis of their disclosure in correspondences,
bills to the effect as mandated for them. There was neither any
default nor any delay in payment made to such enterprises, credit terms
where of were within period prescribed under statute.
9. Sale of Services Rs. 0.17 (previous year Rs. 0.30) relates to
hiring charges paid by customers for using Company''s machines.
10. Exchange gain works out to Rs. 9.55 (Previous Year Rs. 5.74) and
exchange loss Rs. 16.41 (Previous year Rs. 9.94) and their net impact
have been debited to Profit & Loss Account under the head "Finance
Cost".
11. Pursuant to the purchase agreement executed by the company for
acquisition of a unit under a deal of slump sale involving
consideration money of Rs. 15, it inherited fixed assets worth Rs.
14.67 and other noncurrent assets worth Rs. 0.18, current assets worth
Rs. 0.24 and current liabilities for amounting to Rs. 0.09 from one of
its'' contract manufacturers situated at Plot no.16, Sector-2, II E,
Pantnagar, Uttarakhand.
12. (a) Figures for the previous year have been rearranged/ regrouped
as and when necessary in terms of current year''s grouping.
(b) Figures are rounded off to nearest rupees in crores.
Mar 31, 2013
1. COMPANY INFORMATION
Dabur India Limited (the ''Company'') is a domestic public limited
company and is listed on the Bombay Stock Exchange Limited (BSE) and
the National Stock Exchange of India Limited (NSE). The company is one
of the leading FMCG players dealing in consumer care and food products.
The Company has manufacturing facilities across the length & breadth of
the country and Research and Development center in U.P. (Sahibabad),
selling arrangements being primarily in India through independent
distributors except for institutional sales which are handled directly
by the company.
2. EXTRA ORDINARY ITEM
During the current year extraordinary item is Nil. Same for the
previous year was Rs. 4489 relating to investment in H&B Stores limited
a wholly owned subsidiary written off on account of Hon''ble High Court
Delhi approving investee''s application for reduction for share capital
against cancellation of 448938127 number of equity shares of Rs. 1 each
not being represented by tangible/ intangible assets.
A. The basis used for determination of expected rate of return is
average return on long term investment in Government bonds
B. The estimate of future salary increase take into account regular
increment, promotional increases and Inflationary consequence over
price index.
C. Demographics assumptions take into account mortality factor as per
LIC (1994-96) ultimate criteria, employees and normal retirement age at
58.
D. Particulars on planned assets have been ascertained on the basis of
last confirmation from Insurance Company.
E. CY- Current Year, PY - Previous Year 50. AS 30, 31 & 32
a) Considering mandatory status of AS-30 as conferred by ICAI,
continuing upto the point of approval of accounts of previous year,
company adopted relevant standard in said year. Notwithstanding
subsequent modification of mandatory status on AS-30 by ICAI, the
company continues to follow AS-30 for treatment of financial
instruments, financial assets & liabilities as relevant standard, has
been recommended for adoption by ICAI and is akin to International
Accounting Standard with ability to express the affairs of its
jurisdiction in relatively realistic perspective of true and fairness
of accounts.
b) Financial assets/liabilities available for sale are of the nature of
loans, receivables and payables, (not being receivable/ payable in
short term context), call for measurements at amortized value unless
amortized value does not materially differ from unamortized value or
assets /liabilities are held at floating rate of interest.
c) Effective rate of interest applicable for arriving at discounted
value of relevant liabilities & assets as on date, hereby described as
amortized value, has been considered on the basis of appropriate
Government Bond rate ruling as on 31-03-2013 which is 7.95 % as against
8.4% ruling as on 31-03-2012. Such benchmarking of effective rate is
attributed to expected cognizance taken by government of the market
risk, commodity price index, foreign exchange reserve, inflationary &
deflationary impact on internal rates & cyclic/non cyclic fluctuations
in fiscal & monetary system for the purpose of arriving at the rate of
bond.
e) Unrealized hedging loss forming part of financial assets of Rs. 56
(Rs. 53) against off balance sheet exposure appears in the current
liabilities in the balance sheet.
f) Value of equity instruments, financial assets not carried at fair
value except for those having negligible impact or bearing floating
rate of interest.
Rs. 107 (Rs. 107) towards non current investment
Rs. 18401 (Rs. 3000) of term deposit with bank maturing little after
one year
g) All financial assets and financial liabilities, not being referred
to in above table, being short term in nature and not tradable in
primary or secondary market, have been carried at unamortized cost.
h) The company has no exposure involving credit risk included in loan
or receivable.
i) Rs. 8 (Rs. 8) of fixed deposits are pledged with government
authorities towards excise bond.
3. INVESTMENT IN JOINT VENTURE INFORMATION (pursuant to AS-27)
(a) The company is a party to joint venture agreement controlling the
management of Forum 1 Aviation Limited, a domestic jointly controlled
corporate entity (JCE) with part of its operation akin to jointly
controlled operation , the main object of the JCE being maintenance of
aircraft for use of venturers or otherwise. The contributions of
venturers are towards capital build up of the JCE and periodic
contribution towards cost of maintenance of air craft. Variable
component of cost of maintenance is borne by user of the aircraft in
proportion to their actual usage and fixed component is shared by all
the venturers in proportion to their capital contribution. The
participation of the venturers in the affairs of the management of the
JCE is through representation in the composition of Board of Directors
as agreed in share holder''s agreement.
(b) Share of the company in assets, outside liability, net worth,
income and expenses not being accounted for herein works out to Rs. 952
(Previous year Rs. 1011), Rs. 347 (Previous year Rs. 441), Rs. 605
(Previous year Rs. 114), Rs. 526 (Previous year Rs. 396) and Rs. 442
(Previous year Rs. 362) respectively in respect of year under audit as
per un-audited accounts of the JCE.
(c) Stake of the company in terms of percentage of total subscribed and
paid up capital of JCE is 14.28%. Said amount Rs. 456 (Rs. 456) appears
under investment head in balance sheet of the company.
(d) Company''s commitment towards revenue expenditure of the JCE
amounting to Rs. 542 (Previous year Rs. 439) has been charged to profit
and loss account under the head general charges.
(e) The company has furnished guarantee bond for Rs. 714 (previous year
Rs. 714) in respect of borrowing availed by the JCE for acquisition of
aircraft which forms part of point 23 of these notes.
(f) No income from said investment, unless realized in cash, is
recognized in this stand alone account.
4. A. RELATED PARTY DISCLOSURES
Related party disclosures as required under AS-18:
(a) Related parties where control exists:
H & B Stores Limited - (Domestic Wholly Owned Subsidiary)
Dermoviva Skin Essentials Inc - (Foreign wholly Owned Subsidiary)
Asian Consumer care Pvt. Ltd., Dhaka - (Foreign Subsidiary)
Dabur Nepal Pvt. Ltd., Nepal - (Foreign Subsidiary)
Dabur Egypt Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Dabur (UK) Ltd., UK - (Foreign Wholly Owned Subsidiary)
Dabur International Ltd., UAE - (Foreign Wholly Owned Subsidiary)
Weikfield International (UAE) LLC - (Foreign Subsidiary)
African Consumer care Limited, Nigeria - (Foreign Wholly Owned
Subsidiary)
Asian Consumer care Pakistan (Pvt.) Ltd., Pakistan - (Foreign
Subsidiary)
Naturelle LLC, UAE - (Foreign Wholly Owned Subsidiary)
Dabur Egypt Trading Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Hobi Kozmetik - (Foreign Wholly Owned Subsidiary)
Ra Pazarlama - (Foreign Wholly Owned Subsidiary)
Namaste Laboratories LLC, US - (Foreign Wholly Owned Subsidiary)
Hair Rejuvenation & Revitalization Nigeria Ltd. - (Foreign Wholly
Owned Subsidiary)
Healing Hair Lab International LLC, USA - (Foreign Wholly Owned
Subsidiary)
Urban Lab International LLC, USA - (Foreign Wholly Owned Subsidiary)
Dabur Lanka (Pvt.) Ltd, Sri Lanka - (Foreign Wholly Owned Subsidiary)
Namaste Cosmeticos Ltda, Brazil - (Foreign Wholly Owned Subsidiary)
(b) Other related parties in transaction with the company:
(i) Joint venture /Partnership Forum 1 Aviation Limited
(ii) Key management personnel (Whole time directors)
1. P D Narang
2. Sunil Duggal
(iii) Entities over which Key Management Personnel are able to exercise
significant influence:
None
A. Item referred to in 1 above includes Purchases from Dabur Nepal
Pvt. Ltd. Rs.30,926 (Rs. 29,451)
B. Item referred to in 2 above includes Sales to Dabur International
Ltd, African Consumer Care Ltd. , Naturelle LLC, Asian Consumer Care
Pakistan (Pvt) Ltd., Asian Consumer care Ltd. Rs. 935, Rs. 839, Rs.
2,222, Rs. 846 and Rs. 667 respectively (Rs. 774, Rs. 540, Rs. 1,448,
Rs. 805 and Rs. 583 respectively)
C. Items referred to in 3 above relates to royalty paid to Dermoviva
Skin Essentials Inc Rs. 11 (Rs. 10)
D. Items referred to in 4 above relates to joint venture expenses paid
to Forum 1 Aviation Ltd. Rs. 542 (Rs. 439)
E. Items referred to in 5 above includes Interest received on loan
given to Dermoviva Skin Essentials Inc Rs. Nil (Rs. 9)
F. Items referred to in 6 above relates to remuneration paid to Sunil
Duggal & P D Narang Rs. 554 & Rs. 555 respectively (Rs. 507 & Rs. 508
respectively)
G. Items referred to in 8 above relates to interest paid on security
deposit from Forum 1 Aviation Ltd. Rs. 305 (Rs. 228)
H. Items referred to in 9 above relates to loan given to H&B Stores
Ltd. Rs. 900 (Rs. 1,600)
I. Items referred to in 10 above relates to loan repaid by H&B stores
Ltd. by converting it into equity at par
J. Item referred to in 11 above relates to equity issued by H&B Stores
Ltd. by converting loan into equity Rs. 3,430 (Rs. Nil)
K. Figures in bracket relate to Previous year.
5. The company''s freehold land situated at Sahibabad measuring about
7.58 acres was acquired by U.P. Government under Land Acquisition Act
and the State Government had allotted and given possession of about
4.72 acres of land on lease to the Company in lieu of acquired land.
The company has filed a claim for compensation of Rs. 572 before the
Office of Special Land Acquisition Officer, Ghaziabad against the land
so acquired. However, keeping in view the generally accepted accounting
practice, the said claim has not been considered in the books of
accounts.
6. Loans and Advances include Rs. 49 (Previous year Rs. 49 ) paid by
the Company to Excise authorities on behalf of Sharda Boiron
Laboratories Limited, now known as SBL Limited, in respect of excise
duty demand of Rs. 68 raised by the District Excise Officer, Ghaziabad,
against the Company and Sharda Boiron Laboratories Limited. The
Hon''ble Supreme Court of India had concurred with the order of the
District Excise Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the
Hon''ble Supreme Court of India, which was also decided against the
Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron
Laboratories Limited in favour of the Company and as per the terms and
conditions of the contract executed with them, the recovery proceedings
have been initiated by the Company against Sharda Boiron Laboratories
Limited for Rs. 49 by invoking the arbitration clause. The matter is
pending before Hon''ble High Court of Delhi for the appointment of an
arbitrator. The balance amount of Rs. 21 along with interest demanded
by the Excise Authorities has been paid directly by Sharda Boiron
Laboratories Limited to Excise Authorities. During the year 1991-92
the company had received a refund of Rs. 6 pursuant to the decision of
Hon''ble Supreme Court in this regard. Necessary adjustments in respect
of recovery/refund will be made as per the arbitration proceedings.
7. Amount due to Micro & Small enterprises under MSMED Act, 2006 is
Rs.475 (previous year Rs.566). Identification of such enterprises has
been made on the basis of their disclosure in correspondences, bills to
the effect as mandated for them. There was neither any default nor any
delay in payment made to such enterprises, credit terms where of were
within period prescribed under statute.
8. Sale of Services Rs. 30 (previous year Rs. 41) relates to hiring
charges paid by customers for using Company''s machines.
9. Exchange gain works out to Rs. 574 (Previous Year Rs. 2275) and
exchange loss Rs. 994 (Previous year Rs. 2345) and their net impact
have been debited to Profit & Loss Account under the head "Finance
Cost''!
10. Assets written down/ discarded
11. (a) Figures for the previous year have been rearranged/ regrouped
as and when necessary in terms of current year''s grouping.
(b) Figures are rounded off to nearest rupees lacs.
Mar 31, 2012
1. Building constructed on leasehold land included in the value of
building shown in Fixed Assets Schedule:
as at March 31, 2012 As at March 31, 2011
Cost/Revalued 18745 17832
Written Down 14718 14220
2. Loans and Advances include Rs.49 (Previous year Rs.49 ) paid by the
Company to Excise authorities on behalf of Sharda Boiron Laboratories
Limited, now known as SBL Limited, in respect of excise duty demand of
Rs. 68 raised by the District Excise Officer, Ghaziabad, against the
Company and Sharda Boiron Laboratories Limited. The Hon'ble Supreme
Court of India had concurred with the order of the District Excise
Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the
Hon'ble Supreme Court of India, which was also decided against the
Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron
Laboratories Limited in favour of the Company and as per the terms and
conditions of the contract executed with them, the recovery proceedings
have been initiated by the Company against Sharda Boiron Laboratories
Limited for Rs. 49 by invoking the arbitration clause. The matter is
pending before Hon'ble High Court of Delhi for the appointment of an
arbitrator. The balance amount of Rs. 21 along with interest demanded
by the Excise Authorities has been paid directly by Sharda Boiron
Laboratories Limited to Excise Authorities. During the year 1991-92 the
Company had received a refund of Rs. 6, pursuant to the decision of
Hon'ble Supreme Court in this regard. Necessary adjustments in respect
of recovery/refund will be made as per the arbitration proceedings.
3. a. Further to para A (3) above, Company has assessed recoverable
value of each cash generating units (CGUs) and each intangible assets
based on value-in-use method. Such assessment indicated the value in
use of corresponding assets higher than corresponding carrying cost of
assets thereby ruling out the cause of further arriving at their
net-selling- price and exigency of provision against impairment loss.
b. CGUs include Narenderpur plant, Sahibabad plant, each of plants
situated at Nashik /Baddi/Jammu, Rudrapur Plant, Silvasa Plants,
Pitampur Plant, Kanpur Plant, Alwar Plant, Newai Plant and Jalpaiguri
Plant.
c. Annual discount rate considered for arriving at value-in-use of
assets of each CGUs is 7.50% i.e the average interest rate of external
borrowing plus risk factor @ 2.00 % per annum.
d. Plant & Machineries worth Rs. 50 lacs (previous year Rs. 2 lacs) in
terms of written down value have been discarded on the ground of losing
utility.
4. Contingent Liabilities :
a. Claims against the Company not acknowledged as debts:
i. In respect of civil suits filed against the Company Rs. 770
(previous year Rs. 772)
ii. In respect of claims by employees Rs. 44 (previous year Rs. 30)
iii. In respect of excise duty disputes pending with various judicial
authorities Rs. 7611 (previous year Rs. 5035).
iv. In respect of Sales Tax under appeal Rs. 1070 (previous year Rs.
1202)
v. In respect of Income tax under appeal Rs. 319 (previous year Rs.
940)
vi. In respect of letters of credit Rs. 390 (previous year Rs. 179)
b. Guarantees given:
In respect of Guarantees furnished by the Company Rs. 122303 (previous
year Rs. 93172)
c. Information pursuant to AS 29:
Brief particulars of provisions on disputed liabilities:
5. The Company's freehold land situated at Sahibabad measuring about
7.58 acres was acquired by U.P. Government under Land Acquisition Act
and the State Government had allotted and given possession of about
4.72 acres of land on lease to the Company in lieu of acquired land.
The Company has filed a claim for compensation of Rs. 572 before the
Office of Special Land Acquisition Officer, Ghaziabad against the land
so acquired. However, keeping in view the generally accepted accounting
practice, the said claim has not been considered in the books of
accounts.
6. Extra ordinary items relates to investment in H&B Stores limited, a
wholly owned subsidiary, written off on account of Honorable High Court
Delhi approving investee's application for reduction for share capital
against cancellation of 448938127 number of equity shares of Re 1 each
not being represented by tangible/ intangible assets.
G. The basis used for determination of expected rate of return is
average return on long term investment in Government bonds
H. The estimate of future salary increase take in-to account regular
increment, promotional increases and Inflationary consequence over
price index.
I. Demographics assumptions take in to account mortality factor as per
LIC (1994-96) ultimate criteria, employees and normal retirement age at
58.
J. Particulars on planned assets have been ascertained on the basis of
last confirmation from Insurance Company.
K. CY - Current year, PY - Previous year
A. Item referred to in 1 above includes Purchases from Dabur Nepal
Pvt. Ltd. And Dabur International Ltd. Rs.29451 and Rs.186 (Rs. 21719 &
241) repectively.
B. Item referred to in 2 above includes Sales to, Dabur International
Ltd., Weikfieid International (UAE) Ltd., Naturelle LLC, African
Consumer Care Ltd., Asian Consumer Care Pakistan (Pvt) Ltd. Rs. 774,
Rs. 354, Rs.1448, Rs. 540, and Rs.805 respectively (Rs. 651, Rs. 421,
Rs. 869, Rs. 661, & Rs. 384 respectively).
C. Items reffered to in 5 above includes Interest received on loan
given to Dermoviva Skin Essentials Inc. and Dabur International
Limited, Rs. 9 and Rs. Nil respectively (Rs. 1 & Rs. 246).
D. Item referred to in 10 above relates to loan given to Dabur
International Rs.Nil (26854) and H & B Stores Ltd. Rs.2650 (Rs. 1050).
E. Item referred to in 11 above relates to loan repaid by Dabur
International Rs.Nil (26854) and Dermoviva Skin Essentials Inc. Rs.Nil
(Rs.390).
F. Items referred to in 15 above includes Gaurantees & Collaterals to
Dabur Egypt, Naturelle LLC, Asian Consumer Care Pakistan Ltd., Asian
Consumer Care Pvt. Ltd. , Dermoviva Skin Essentials INC., Dabur
International Ltd., Dabur Lanka (Pvt) Ltd. and Forum 1 Aviation Ltd.
Rs. 3372, Nil, Nil, Nil, Rs. 54940, Rs. 59103, Rs. 3561 & Rs. 714
respectively (Rs.1492, Nil, Nil, Nil, Rs. 45259, Rs. 45036, Nil & Rs.
714), which also includes adjustment due to exchange rate fluctuation.
G. Figures in bracket relate to Previous year.
7. Partner, Holding 1% share of the firm Balsara International, a
partnership firm wherein investment of the Company amounted to Rs. 49
(99% share ), resigned during the year, with his share of dues been
paid off. Being reduced to the status of sole proprietary firm, it
became imperative to consolidate the assets and liabilities therein in
Company's account merged herein, in this connection, are net fixed
assets Rs. 22, Cash and Bank balances Rs. 2, Advance Tax Rs. 33 and
Trade Creditors Rs. 7. Excess of investment over net assets inherited,
working out of Rs. 16, has been charged off to General Charges.
8. Exchange gain works out to Rs. 2275 (Previous Year Rs. 93) and
exchange loss Rs. 2345 (Previous year Rs. 2027) and their net impact
has been debited to Profit & Loss Account under the head "Finance Cost"
ii) Lease rent debited to Profit & Loss account of the year. Rs. 67
(Previous year Rs. 58)
iii) Irrevocable lease agreement relates of flat & vehicle, lease
period not exceeding five years in respect of any arrangement.
iv) Figures in bracket relate to previous year.
9. AS 30 , 31 & 32:
a. Pursuant to implementation of AS 30, 31 and 32 all assets and
liabilities excluding equity, fixed assets (tangible and intangible),
inventories and specific exceptions referred to in accounting policy
no. A (4 ) of schedule 23 have come to be recognized within the purview
of financial assets and financial liabilities. This also includes off
balance sheet exposures in derivative instruments referred to in
accounting policy no. A( 4)(d), schedule 23. This read with deferred
tax and impairment provision on tangible and intangible assets, marks
departure from historic concept of accounts otherwise followed by the
Company.
b. Financial assets/liabilities available for sale are of the nature
of loans, receivables and payables, (not being receivable/ payable in
short term context), call for measurements at amortized value as
defined in accounting policy no. 4 (b). Schedule 23 unless amortized
value does not materially differ from unamortized value or assets
/liabilities are held at floating rate of interest.
Effective rate of interest applicable for arriving at discounted value
of relevant liabilities & assets as on date, hereby described as
amortized value, has been considered on the basis of appropriate
Government Bond rate ruling as on 31-03-2012 i.e. 8.4 %. Such
benchmarking of effective rate is attributed to expected cognizance
taken by government of the market risk , commodity price index, foreign
exchange reserve, inflationary & deflationary impact on internal rates
& cyclic / non cyclic fluctuations in fiscal & monetary system for the
purpose of arriving at the rate of bond.
c. Implementation of AS 30, 31 & 32 led to change in the treatment of
financial assets / liabilities / instruments which during the year
added to the opening General reserve , deferred tax liability and
investment revaluation reserve by Rs. 76, Rs. 37 & Rs. 78 respectively
with consequent rise in current investment, non-current investment by
Rs. 65 and Rs. 78 respectively and decline in long term borrowing by
Rs. 48.
e. This being the first financial year of implementation of above
accounting standard figures of previous years are not applicable for
table in 'b' above.
f. Unrealized hedging loss forming part of financial assets of Rs. 53
against off balance sheet exposure appear in the current liabilities in
the balance sheet.
g. Value of equity instruments, financial assets not carried at fair
value except for those having negligible impact or bearing floating
rate of interest Rs. 107 towards non-current investment Rs. 3000 of term deposit with bank maturing little after one year.
h. All financial assets and financial liabilities, not being referred
to in above table, being short term in nature and not tradable in
primary or secondary market, have been carried at unamortized cost.
i. This being the first year of implementation of AS 30, 31 & 32
question of change in market value, fair value and market risk vis a
vis previous year does not occur.
j. The Company has no exposure involving credit risk included inloan or
receivable.
k. Rs. 8 of fixed deposit is pledged with government authorities
towards excise bond.
l. Outstanding overseas exposure hedged by forward option/ contract
against adverse currency fluctuation:
10. Investment in Joint Venture Information (pursuant to AS-27) :
(a) The Company is a party to joint venture agreement controlling the
management of Forum 1 Aviation Limited, a domestic jointly controlled
corporate entity (JCE) with part of its operation akin to jointly
controlled operation, the main object of the JCE being maintenance of
aircraft for use of venturers or otherwise. The contributions of
venturers are towards capital build up of the JCE and periodic
contribution towards cost of maintenance of air craft. Variable
component of cost of maintenance is borne by user of the aircraft in
proportion to their actual usage and fixed component is shared by all
the venturers in proportion to their capital contribution. The
participation of the venturers in the affairs of the management of the
JCE is through representation in the composition of Board of Directors
as agreed in share holder's agreement.
(b) Share of the Company in assets, outside liability, net worth,
income and expenses not being accounted for herein works out to Rs.
1011 (Previous year 1219), Rs. 441 (Previous year 553), Rs. 114
(Previous year 173), Rs. 396 (Previous year 422) and Rs. 362 (Previous
year 357) respectively in respect of year under audit as per un-audited
accounts of the JCE.
(c) Stake of the Company in terms of percentage of total subscribed and
paid up capital of JCE is 14.28%. Said amount (Rs. 456) appears under
investment head in balance sheet of the Company.
(d) Company's commitment towards revenue expenditure of the JCE
amounting to Rs. 439 (Previous year Rs. 452) has been charged to profit
and loss account under the head general charges.
(e) The Company has furnished guarantee bond for Rs. 714 (previous year
Rs. 714) in respect of borrowing availed by the JCE for acquisition of
aircraft which forms part of para B 4 (b)(i) of this schedule.
(f) No income from said investment, unless realized in cash, is
recognized in this stand alone account.
11. Trade Payables include Creditors for goods and services.
12. Information pursuant to AS-17 issued by ICAI (Refer Page no. 104).
13. Amount due to Micro & Small enterprises under MSMED Act, 2006 is
Rs. 566 (previous year Rs. 172). Identification of such enterprises
have been made on the basis of their disclosure in correspondences,
bills to the effect as mandated for them. No interest liability has
been accrued on account of default in payment to relevant enterprises
like previous year.
14. Sale of Services Rs. 41 CY relate to hiring charges paid by
customers for using Company's machines.
15. (a) Figures for the previous year have been rearranged/ regrouped
as and when necessary in terms of current year's grouping.
(b) Figures are rounded off to nearest rupees lacs.
Mar 31, 2011
1. Loans and Advances include Rs. 49 (Previous year Rs. 49 ) paid by
the Company to Excise authorities on behalf of Sharda Boiron
Laboratories Limited, now known as SBL Limited, in respect of excise
duty demand of Rs. 68 raised by the District Excise Officer, Ghaziabad,
against the Company and Sharda Boiron Laboratories Limited. The Honble
Supreme Court of India had concurred with the order of the District
Excise Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the
Honble Supreme Court of India, which was also decided against the
Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron
Laboratories Limited in favour of the Company and as per the terms and
conditions of the contract executed with them, the recovery proceedings
have been initiated by the Company against Sharda Boiron Laboratories
Limited for Rs. 49 by invoking the arbitration clause. The matter is
pending before Honble High Court of Delhi for the appointment of an
arbitrator. The balance amount of Rs. 21 along with interest demanded
by the Excise Authorities has been paid directly by Sharda Boiron
Laboratories Limited to Excise Authorities. During the year 1991-92 the
company had received a refund of Rs. 6, pursuant to the decision of
Honble Supreme Court in this regard. Necessary adjustments in respect
of recovery/refund will be made as per the arbitration proceedings.
2. a. Further to para A (3) above, company has assessed recoverable
value of each cash generating units (CGUs) and each intangible assets
based on value-in-use method. Such assessment indicated the value in
use of corresponding assets higher than corresponding carrying cost of
assets thereby ruling out the cause of further arriving at their
net-selling-price and exigency of provision against impairment loss.
b. CGUs include Narenderpur Plant, Sahibabad Plant, each of plants
situated at Nashik /Baddi/Jammu, Rudrapur Plant, Silvasa Plants,
Pitampur Plant, Kanpur Plant, Alwar Plant, Newai Plant and Jalpaiguri
Plant.
c. Annual discount rate considered for arriving at value-in-use of
assets of each CGUs is 7.50% i.e the average interest rate of external
borrowing plus risk factor @ 2.00 % per annum.
4. Contingent Liabilities /Capital Contracts :
a. Claims against the company not acknowledged as debts:
i. In respect of civil suits filed against the company Rs. 772
(previous year Rs. 755)
ii. In respect of claims by employees Rs. 30 (previous year Rs. 17)
iii. In respect of letters of credit Rs. 179 (previous year Rs. 53)
iv. In respect of Bank Guarantees executed Rs. 671 (previous year Rs.
673)
v. In respect of Sales Tax under appeal Rs. 1202 (previous year Rs.
1167)
vi. In respect of excise duty disputes pending with various judicial
authorities Rs. 5035 (previous year Rs. 2321).
vii. In respect of Corporate Guarantees given by the Company Rs. 92501
(previous year Rs. 5311)
viii. In respect of Income tax under appeal Rs. 940 (previous year Rs.
77)
b. Bills discounted Rs. 4384 (previous year Rs. 3416).
c. Estimated Amount of contract remaining to be executed on capital
Account Rs. 2725 (previous year Rs. 2462) - Net of advance Rs 755
(previous year Rs. 1390)
d. Information pursuant to AS 29:
i) Resulting outflows against above liabilities, pending before Sales
Tax DC/Tribunal/CCTs, if mature, are expected to be in succeeding
financial year.
ii) Provisions are made herein for medium risk oriented issues as a
measure of abundant precaution.
iii) Company presumes remote risk possibility of further cash outflow
pertaining to contingent liabilities listed in para 4 (a) and 4 (b)
above.
Note : (a) Production/purchase are net of stock written down, write
down of inventory in monetory terms aggregate Rs. 1274 (previous year
Rs. 1288)
(b) Figures in bracket relate to previous year.
9. The companys freehold land situated at Sahibabad measuring about
7.58 acres was acquired by U.P. Government under Land Acquisition Act
and the State Government had allotted and given possession of about
4.72 acres of land on lease to the Company in lieu of acquired land.
The company has filed a claim for compensation of Rs. 572 before the
Office of Special Land Acquisition Officer, Ghaziabad against the land
so acquired. However, keeping in view the generally accepted accounting
practice, the said claim has not been considered in the books of
accounts.
10. Employee related Dues :
G. The basis used for determination of expected rate of return is
average return on long term investment in Government bonds
H. The estimate of future salary increase take in-to account regular
increment, promotional increases and Inflationary consequence over
price index.
I. Demographics assumptions take in to account mortality factor as per
LIC (1994-96) ultimate criteria, employees and normal retirement age at
58.
J. Particulars on planned assets have been ascertained on the basis of
last confirmation from Insurance Company.
K. Figures in bracket relate to previous year.
11. A. Related party Disclosures
Related party disclosures as required under AS 18 :
(a) Related parties where control exists :-
H & B Stores Limited - (Domestic Wholly Owned Subsidiary)
Dermoviva Skin Essentials Inc. - (Foreign wholly Owned Subsidiary)
Asian Consumercare Pvt Ltd., Dhaka - (Foreign Subsidiary)
Dabur Nepal Pvt. Ltd., Nepal - (Foreign Subsidiary)
Dabur Egypt Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Dabur (UK) Ltd., UK - (Foreign Wholly Owned Subsidiary)
Dabur International Ltd., UAE - (Foreign Wholly Owned Subsidiary)
Weikfield International (UAE) LLC - (Foreign Subsidiary)
African Consumercare Limited,
Nigeria - (Foreign Wholly Owned Subsidiary)
Asian Consumercare Pakistan Pvt.
Ltd., Pakistan - (Foreign Subsidiary)
Naturelle LLC, UAE - (Foreign Wholly Owned Subsidiary)
Dabur Egypt Trading Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Hobi Kozmetik - (Foreign Wholly Owned Subsidiary)
Zeki Plastik - (Foreign Wholly Owned Subsidiary)
Ra Pazarlama - (Foreign Wholly Owned Subsidiary)
Namaste Laboratories - (Foreign Wholly Owned Subsidiary)
Hair Rejuvenation & Revitalization
Nigeria Ltd. - (Foreign Wholly Owned Subsidiary)
Healing Hair Lab International
LLC, USA - (Foreign Wholly Owned Subsidiary)
Urban Lab International LLC, USA - (Foreign Wholly Owned Subsidiary)
b) Other related parties in transaction with the company:
(i) Joint venture /Partnership
Forum 1 Aviation Limited.
Balsara International
(ii) Key management personnel (whole time directors)
1 Pradip Burman
2 P. D. Narang
3 Sunil Duggal
(iii) Relative of key management personnel
1 Asha Burman
(iv) Entities over which Key Management Personnel are able to exercise
significant influence:
1 Sanat Products Ltd
Notes:
A. Item referred to in 1 above includes Purchases from Dabur Nepal
Pvt. Ltd. and Dabur International Ltd. Rs.21719 and Rs.241 (Rs. 16797 &
Nil) respectively.
B. Item reffered to in 2 above includes Sales to Dabur International
Ltd., Weikfieid International (UAE) LLC, Naturelle LLC, African
Consumer Care Ltd., Asian Consumer Care Pakistan Pvt. Ltd. Rs.651,
Rs.421, Rs.869, Rs.661, and Rs.384 respectively (Rs. 752, Rs. 402, Rs.
518, Rs.210 & Rs.93 respectively).
C. Items reffered to in 6 above includes Rent received from Balsara
International Rs.2 (Rs.2)
D. Items reffered to in 7 above includes Interest received on loan
given to Dermoviva Skin Essentials Inc. and Dabur International
Limited, Rs. 1 and Rs. 246 respectively (Nil & Nil)
E. Item reffered to in 12 above relates to loan given to Dabur
International Ltd. Rs.26854 (Nil) and H & B Stores Ltd. Rs.1050 (Nil)
F. Item reffered to in 13 above relates to loan repaid by Dabur
International Ltd. Rs.26854 (Nil) and Dermoviva Skin Essentials Inc.
Rs.390 (Rs.453)
G. Items reffered to in 14 above includes Capital Contribution to
Balsara International Rs.Nil (Rs.49)
H. Items reffered to in 16 above includes Gaurantees & Collaterals to
Dabur Egypt Ltd., Naturelle LLC, Asian Consumer Care Pakistan Pvt.
Ltd., Asian Consumer Care Pvt. Ltd. , Dermoviva Skin Essentials Inc.,
Dabur International Ltd. and Forum I Aviation Ltd. Rs.1492, Nil,
Nil,Nil,Rs.45259,Rs.45036 & Rs.714 respectively (Rs.1738,
Rs.763,Rs.398,Rs.1690, Nil, Nil, Rs.714)
I. Figures in bracket relate to Previous year.
12. Exchange gain works out to Rs. 93 (Previous Year Rs. 1367) - net
of exchange loss Rs. 2027 (Previous year Rs. 509) which has been
credited to Profit & Loss Account under the head ÃMiscellaneous
ReceiptsÃ.
13. Information pursuant to AS 19 issued by ICAI relating to operating
lease:
ii) Lease rent debited to Profit & Loss account of the year Rs. 58
(Previous year Rs. 38)
iii) Irrevocable lease agreement relates of flat & vehicle, lease
period not exceeding five years in respect of any arrangement.
iv) Figures in bracket relate to previous year.
15. Perquisites of retired director Rs. 29 (previous year Rs. 13) paid
during the year.
16. (I) Investment in Joint Venture Information (pursuant to AS-27) :-
(a) The company is a party to joint venture agreement controlling the
management of Forum 1 Aviation Limited, a domestic jointly controlled
corporate entity (JCE) with part of its operation akin to jointly
controlled operation , the main object of the JCE being maintenance of
aircraft for use of venturers or otherwise. The contributions of
venturers are towards capital build up of the JCE and periodic
contribution towards cost of maintenance of aircraft. Variable
component of cost of maintenance is borne by user of the aircraft in
proportion to their actual usage and fixed component is shared by all
the venturers in proportion to their capital contribution. The
participation of the venturers in the affairs of the management of the
JCE is through representation in the composition of Board of Directors
as agreed in shareholders agreement.
(b) Share of the company in assets, outside liability, net worth,
income and expenses not being accounted for herein works out to Rs.
1219 (Previous year Rs. 1240), Rs. 553 (Previous year Rs. 593), Rs. 173
(Previous year Rs. 154), Rs 422 (Previous year Rs. 399) and Rs. 357
(Previous year Rs. 303) respectively in respect of year under audit as
per un-audited accounts of the JCE.
(c) Stake of the company in terms of percentage of total subscribed and
paid up capital of JCE is 14.28%. Said amount (Rs.456) appears under
investment head in balance sheet of the company.
(d) Companys commitment towards revenue expenditure of the JEC
amounting to Rs.452 (Previous year Rs.394) has been charged to profit
and loss account under the head general charges.
(e) The company has furnished guarantee bond for Rs. 714 (previous year
Rs. 714) in respect of borrowing availed by the JCE for acquisition of
aircraft which forms part of para B 4 (a) (vii) of this schedule.
(f) No income from said investment, unless realized in cash, is
recognized in this stand alone account.
(II) Investment in partnership firm:
(a) The company has invested Rs. Nil (previous year Rs. 49) against
capital contribution during the year (Previous year Nil) towards its
99% stake in a partnership firm namely Balsara International.
(b) Mr Abhay Agarwal is another 1% partner in said firm who has
invested Re. 1 on accounts of his capital.
(c) Pending finalization of account of the firm, income and expenses of
the said firm have not been accounted for the year which, however, has
immaterial impact on profitability of the company.
(d) Assets and liabilities pertaining to interest of the company in the
partnership firm as on 31.3.2011 amount to Rs. 80 (previous year Rs.
81) & Rs. 9 (previous year Rs. 9) respectively.
17. Debtors includes Rs. 1147 (Previous year Rs. 256) being due from
subsidiaries.
(c) Outstanding overseas exposure hedged by forward /option contract
against adverse currency fluctuation
(i) Packing Credit USD 52 (USD 100)
(ii) Outstanding overseas exposure not being hedged against adverse
currency fluctuation :-
1. Export receivable : EUR 4 (EUR 2)
GBP 1 (GBP 1)
USD 62 (USD 17)
2. Overseas Creditors : UAE Dhiram 23 (UAE Dhiram 98)
AUD 1 (AUD 1)
Swiss Franc Nil (Swiss Franc 1)
EUR Nil (EUR 1)
USD 3 (USD Nil)
3. Foreign Currency Loan JPY 1299 (JPY 2165)
Figures in bracket relates to previous year.
20. Extra Ordinary Item Includes:-
a) Profit on sale of E.O.U at Nashik Nil (Previous year Rs. 190)
b) Loss on sale of specific chemical Nil (Previous Year Rs. 3)
c) Rs. Nil (previous year Rs. 61) on account of miscellaneous
expenditure written off in consequence of preponment of the date of
exercise of option right under ESOP with corresponding decline in
vesting period for a part of options, unlike earlier years.
21. Information pursuant to AS - 17 issued by ICAI . (refer page no.
115)
22. Figures for the previous year have been rearranged/regrouped as
and where necessary in terms of current years grouping.
Mar 31, 2010
1. Building constructed on leasehold land included in the value of
building shown in Fixed Assets Schedule:
As at 31st March 2010 As at 31st March 2009
Cost/Revalued 17229 11049
Written Down 14007 8178
2. Loans and Advances include Rs.49 (Previous year Rs.49 )paid by the
Company to Excise authorities on behalf of Sharda Boiron Laboratories
Limited, now known as SBL Limited, in respect of excise duty demand of
Rs.68 raised by the District Excise Officer, Ghaziabad, against the
Company and Sharda Boiron Laboratories Limited. The Honble Supreme
Court of India had concurred with the order of the District Excise
Officer, Ghaziabad.
The Company had filed the review petition before Division Bench of the
Honble Supreme Court of India, which was also decided against the
Company. Pursuant to the indemnity bond executed by M/s Sharda Boiron
Laboratories Limited in favour of the Company and as per the terms and
conditions of the contract executed with them, the recovery proceedings
have been initiated by the Company against Sharda Boiron Laboratories
Limited for Rs.49 by invoking the arbitration clause. The matter is
pending before Honble High Court of Delhi for the appointment of an
arbitrator. The balance amount of Rs. 21 along with interest demanded
by the Excise Authorities has been paid directly by Sharda Boiron
Laboratories Limited to Excise Authorities. During the year 1991-92
the company had received a refund of Rs.6, pursuant to the decision of
Honble Supreme Court in this regard. Necessary adjustments in respect
of recovery/refund will be made as per the arbitration proceedings.
3. a. Further to para A(3) above, company has assessed recoverable
value of each cash generating units (CGUs) and each intangible assets
based on value-in-use method. Such assessment indicated the value in
use of corresponding assets higher than corresponding carrying cost of
assets thereby ruling out the cause of further arriving at their
net-selling-price and exigency of provision against impairment loss.
b. CGUs include Narenderpur plant, Sahibabad plant, each of plants
situated at Nashik /Baddi/Jammu, Rudrapur Plant , Silvasa Plants,
Pitampur Plant, Kanpur Plant , Alwar Plant, Newai Plant and Jalpaiguri
Plant.
c. Annual discount rate considered for arriving at value-in-use of
assets of each CGUs is 6.50% i.e the average interest rate of external
borrowing plus risk factor @ 2.00 % per annum.
4. Contingent Liabilities /Capital Contract:
a) Claims against the company not acknowledged as debts:
i. In respect of civil suits filed against the company Rs.755
(previous year Rs. 655)
ii. In respect of claims by employees Rs.17 (previous year Rs 13)
iii. In respect of letters of credit Rs. 53 (previous year Rs. 42)
iv. In respect of Bank Guarantees executed Rs.673 (previous year
Rs.1850)
v. In respect of Sales Tax under appeal Rs. 1167 (previous year Rs.
760)
vi. In respect of excise duty disputes pending with various judicial
authorities Rs.2321 (previous year Rs. 1731).
vii. In respect of Corporate Guarantees given by the Company Rs.7133
(previous year Rs.6595) viii. In respect of Income tax under appeal
Rs.77 (previous year Rs.68)
b) Bills discounted Rs 3416 (previous year Rs. 4527).
c) Estimated Amount of contract remaining to be executed on capital
Account Rs. 2462 (previous year Rs. 3065) - Net of advance Rs 1390
(previous year Rs.592)
5. The companys freehold land situated at Sahibabad measuring about
7.58 acres was acquired by U.P. Government under Land Acquisition Act
and the State Government had allotted and given possession of about
4.72 acres of land on lease to the Company in lieu of acquired land.
The company has filed a claim for compensation of Rs.572 before the
Office of Special Land Acquisition Officer, Ghaziabad against the land
so acquired. However, keeping in view the generally accepted accounting
practice, the said claim has not been considered in the books of
accounts.
F. The basis used for determination of expected rate of return is
average return on long term investment in Government bonds.
G. The estimate of future salary increase take in-to account regular
increment , promotional increases and Inflationary consequence over
price index.
H. Demographics assumptions take in to account mortality factor as per
LIC (1994-96) ultimate criteria, employees turnover at FS 20% , GS 20%
Director, MS, OS - 12% and SM, APP - 6% and normal retirement age at
58.
I. Figures in bracket relate to previous year.
6 A. Related party Disclosures
Related party disclosures as required under AS 18 :
(a) Related parties where control exists :- H & B Stores Limited -
(Domestic Wholly Owned Subsidiary) Dermoviva Skin Essentials INC -
(Foreign wholly Owned Subsidiary) Asian Consumercare Pvt. Ltd., Dhaka -
(Foreign Subsidiary) Dabur Nepal Pvt. Ltd., Nepal - (Foreign
Subsidiary) Dabur Egypt Ltd., Egypt - (Foreign Wholly Owned Subsidiary)
Dabur (UK) Ltd., UK - (Foreign Wholly Owned Subsidiary) Dabur
International Ltd., UAE - (Foreign Wholly Owned Subsidiary) Weikfield
International (UAE) Ltd. - (Foreign Subsidiary) African Consumercare
Limited, Nigeria - (Foreign Wholly Owned Subsidiary) Asian Consumercare
Pakistan Pvt. Ltd., Pakistan - (Foreign Subsidiary) Naturelle LLC, UAE
- (Foreign Wholly Owned Subsidiary)
(b) Joint venture /Partnership Forum 1 Aviation Limited. Balsara
International
(c) Other Releted Parties in transaction with the Company. (I) Key
management personnel (whole time directors)
1 Pradip Burman
2 P. D. Narang
3 Sunil Duggal
(II) Relative of key management personnel 1 Asha Burman.
(III) Entities over which Key Management Personnel are able to exercise
significant influence: 1 Sanat Products Ltd.
12. Exchange loss works out to Rs. 509 (Previous Year Rs. 210) - net of
exchange gain Rs. 1367 (Previous year Rs. 793) which has been debited
to Profit & Loss Account under the head "general expenses".
16. a. Pension and other perquisites to relative of a deceased
director Re.1 (previous year 16) and Rs Nil (previous year 8)
respectively paid during the year.
b. Pension and other perquisites of retired director Rs.Nil (previous
year 59) and Rs 13 (previous year 31) respectively paid during the
year.
17. (I) Investment in Joint Venture (Information pursuant to AS-27
issued by ICAI) :-
(a) The company is a party to joint venture agreement controlling the
management of Forum 1 Aviation Limited, a domestic jointly controlled
corporate entity (JCE) with part of its operation akin to jointly
controlled operation , the main object of the JCE being maintenance of
aircraft for use of venturers or otherwise. The contributions of
venturers are towards capital build up of the JCE and periodic
contribution towards cost of maintenance of air craft. Variable
component of cost of maintenance is borne by user of the aircraft in
proportion to their actual usage and fixed component is shared by all
the venturers in proportion to their capital contribution. The
participation of the venturers in the affairs of the management of the
JCE is through representation in the composition of Board of Directors
as agreed in share holders agreement.
(b) Share of the company in assets, outside liability, net worth,
income and expenses not being allocated for herein works out to Rs.1240
(Previous year 1243), Rs.593 (Previous year 728) , Rs.154 (Previous
year 20), Rs 399 (Previous year 291) and Rs.303 (Previous year 286)
respectively in respect of year under audit as per un-audited accounts
of the JCE
(c) Stake of the company in terms of percentage of total subscribed and
paid up capital of JCE is 14.28%. Said amount (Rs.456) appears under
investment head in balance sheet of the company.
(d) Companys commitment towards revenue expenditure of the JEC
amounting to Rs. 394 (Previous year Rs.327) has been charged to profit
and loss account under the head general charges.
(e) The Company has furnished guarantee bond for Rs. 714 (previous year
Rs. 714) in respect of borrowing availed by the JCE for acquisition of
aircraft which forms part of para B 4 (a) (vii) of this schedule.
(f) No income from said investment, unless realized in cash, is
recognized in this stand alone account. (II) Investment in partnership
firm :
(a) The company has invested Rs.49 (previous year NIL) against capital
contribution during the year (Previous year NIL) towards itÃs 99% stake
in a partnership firm namely Balsara International.
(b) Mr Abhay Agarwal is another 1% partner in said firm who has
invested Re.1 on accounts of his capital.
(c) Pending finalization of account of the firm, income and expenses of
the said firm have not been accounted for the year which, however, has
immaterial impact on profitability of the company .
(d) Assets and liabilities pertaining to interest of the company in the
partnership firm as on 31.3.2010 amount to Rs. 81 & Rs. 9 respectively.
18. Debtors includes Rs. 280 (Previous year 759) being due from
subsidiaries.
22. Extra Ordinary Item Includes :- a) Profit on sale of E.O.U at
Nashik 190 lacs
b) Loss on sale of specific chemical 3 lacs
c) Rs. 61 lacs on account of miscellaneous expenditure written off in
consequence of preponement of the date of exercise of option right
under ESOP with corresponding decline in vesting period for a part of
options, unlike earlier years.
d) There was no extra-ordinary income or expense in previous year.
7. Information Pursuant to AS - 17 issued by ICAI. (refer page no.
122)
8. Figures for the previous year have been rearranged/regrouped as
and where necessary in terms of current years grouping.
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